The crowding-out effect is likely to be the strongest during periods of
A)recession.
B)large budget surpluses.
C)high employment.
D)expanding money supply.

Question

Quizplus · Accepted Answer

The crowding-out effect is strongest during periods of high employment because government borrowing competes with private borrowing, leading to higher interest rates and reduced private investment.

The Crowding-Out Effect Is Likely to Be the Strongest During