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Economics (MindTap Course List)

13th Edition
Roger A. Arnold
ISBN: 9781337617383

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BuyFindarrow_forward

Economics (MindTap Course List)

13th Edition
Roger A. Arnold
ISBN: 9781337617383
Textbook Problem

Explain two ways crowding out may occur.

To determine

Identify the two possible ways that crowding out may occur in the economy.     

Explanation

The two possible ways that crowding out may occur in the economy are listed below:

  • Substitution of public goods: If people demand government goods and services more than private goods and services, then the government spending will increase and that will result in decline in the private spending...

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