DMPQ-What do you understand by the term Crowding out effect?
Crowding out is an economic concept that describes a situation where government spending and borrowing reduces overall private sector consumption and investment. Crowding out can be caused by an expansionary fiscal policy financed by increased taxes, borrowing or both. Crowding out can refer to when government borrowing absorbs all the available lending capacity in the … Read more DMPQ-What do you understand by the term Crowding out effect?