Some of the crowding out of private expenditures may come in the form of

Question

Quizplus · Accepted Answer

Crowding out of private expenditures occurs when government spending increases, leading to a decrease in the availability of funds for private investment. This decrease in private investment may lead to a decrease in net exports, as businesses have less money available for expansion and exporting goods. Therefore, choice D, a decrease in net exports, is the best answer. The other choices are not directly related to crowding out.

Some of the Crowding Out of Private Expenditures May Come