Crowding out is a reduction in _______ borrowing caused by an increase in _______ borrowing.
A) private; government
B) government; private
C) private; corporate
D) corporate; private

Question

Quizplus · Accepted Answer

Crowding out occurs when increased government borrowing leads to a reduction in private sector borrowing due to higher interest rates or the monopolization of available capital.

Crowding Out Is a Reduction in _______ Borrowing Caused by an Increase