crowding-out effect
crowding-out effect
Glossary micro and macro economics
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Economics
Definition of crowding-out effect
crowding-out effect : caused by the federal government's increased borrowing in the money market that results in a rise in interest rates. The rise in interest rates results in a decrease in gross business domestic investment (Ig), which reduces the effectiveness of expansionary fiscal policy.
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Glossary micro and macro economics
Micro and macro economics glossary index of terms
Definition and meaning of crowding-out effect
Meaning of crowding-out effect
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