What is “crowding out,” and how does it reduce private investment?  b. Given that only certain types of government expenditures crowded out private investment, what are the implications for fiscal policy choices?

What is “crowding out,” and how does it reduce private investment? b. Given that only certain types of government expenditures crowded out private investment, what are the implications for fiscal policy choices?

Read the Case in Point: Crowding Out in Canada in Section 12.3 (.web-books.com/eLibrary/NC/B0/B62/061MB62.html”>click here) and answer the following:

a. What is “crowding out,” and how does it reduce private investment?

b. Given that only certain types of government expenditures crowded out private investment, what are the implications for fiscal policy choices?


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