Crowding out: Difference between revisions
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Occurs when expansionary fiscal policy causes interest rates to rise, thereby reducing investment spending. That means increase in government spending 'crowds out' investment spending. | Occurs when expansionary fiscal policy causes interest rates to rise, thereby reducing investment spending. That means increase in government spending 'crowds out' investment spending. | ||
[[Category: | [[Category:Globalization]] | ||
Latest revision as of 12:54, 16 December 2012
Occurs when expansionary fiscal policy causes interest rates to rise, thereby reducing investment spending. That means increase in government spending 'crowds out' investment spending.
