Crowding in occurs when debt-financed fiscal policy improves expectations and increases business investment spending.

Name: Crowding in occurs when debt-financed fiscal policy improves expectations and increases business investment spending.
Brand: Quizplus
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Question

Quizplus · Accepted Answer

Crowding in refers to the scenario where increased government spending, financed by borrowing, results in increased private sector investments due to improved expectations for future economic growth.

Crowding in Occurs When Debt-Financed Fiscal Policy Improves Expectations and Increases