"Crowding our causes a net decrease in private sector investment becauneO Foreign bond markets siphon loanable funds out of a nation's domestc quantty of loanabie fundsA national govemment has collected more revenues in taes than has spent, and therefore loane the surglus un peorsOBanks and other intermediaries have coluded to arficaly create interest ates thut are much highe than the equbriumterest rteA national govermment has spent far more tax money than ha received and needs to ie bonds to pvate citens in order to balance tsbudget

Crowding out effect is the phenomenon that talks about the effect of the government participation in…

Answered: Crowding our

Business

Economics

Crowding our

ENGR.ECONOMIC ANALYSIS

14th Edition

ISBN:9780190931919

Author:NEWNAN

Publisher:NEWNAN

Chapter1: Making Economics Decisions

Section: Chapter Questions

Problem 1QTC

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Question

"Crowding our causes a net decrease in private sector investment becaune
O Foreign bond markets siphon loanable funds out of a nation's domestc quantty of loanabie funds
A national govemment has collected more revenues in taes than has spent, and therefore loane the surglus un peors
OBanks and other intermediaries have coluded to arficaly create interest ates thut are much highe than the equbriumterest rte
A national govermment has spent far more tax money than ha received and needs to ie bonds to pvate citens in order to balance ts
budget

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