Crowding Out

In terms of public expenditure, crowding-out effect implies?

Q. In terms of public expenditure, crowding-out effect implies: A. Excess government subsidies distorting resource allocation B. Excess private expenditure producing inflation C. Market exploitation by the private sector due to reckless government expenditure. D. Excess government expenditure, raising the interest rate and depressing the availability of funds. Answer:┬áD. Excess government expenditure, raising the interest … Continue reading In terms of public expenditure, crowding-out effect implies?

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