Business, 22.06.2021 21:50, 153536

Those economists who argue that a significant amount of crowding out exists believe that the impact of expansionary fiscal policy will be by the crowding out. Their reasoning is that if the government increases purchases, and finances that spending by borrowing money, spending in the private sector will , leading ultimately to in aggregate demand.

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Those economists who argue that a significant amount of crowding out exists believe that the impact...