Explain crowding out, Microeconomics

Assignment Help:

Explain crowding out and why it may be considered important for policy makers.

Crowding out refers to how enhanced government borrowing (real borrowing!) might serve to raise interest rates and basically makes scarce resources which could be used by firms. Basically, government borrowing crowds out an amount of confidential investment. There is also a monetarist/classical and Keynesian distinction herein, where the former view a high probability of (complete) crowding out and the latter view the effects as limited.

 


Related Discussions:- Explain crowding out

Microeconomics, define and explain the concept of social efficent productio...

define and explain the concept of social efficent production

The theory of demand :the utility approach, Prove that the utility approach...

Prove that the utility approach and the indifference curve approach yield the same consumer equilibrium.

#title.market structures, contrast the longrun equilibrium positions of mon...

contrast the longrun equilibrium positions of monopolistic competition firm and oligopoly

Economics, Tc and TVC curves have an inverted s-shape

Tc and TVC curves have an inverted s-shape

Population census, Population census: A population census is the head ...

Population census: A population census is the head count of people living in a geographical area or in a country. A population census collects comprehensive data on people to

Determine the equation for the total market demand, 1.  Moving from an econ...

1.  Moving from an economically inefficient to efficient allocation of resources will necessarily increase benefits by more than costs. 2.  There are two demand curves for a pri

Demand theory, Ask question #Minintroduction to recent development in deman...

Ask question #Minintroduction to recent development in demand theory

Primary inputs, Normal 0 false false false EN-IN X-NO...

Normal 0 false false false EN-IN X-NONE X-NONE MicrosoftInternetExplorer4

PPC, WHAT IS PPC

WHAT IS PPC

Write Your Message!

Captcha
Free Assignment Quote

Assured A++ Grade

Get guaranteed satisfaction & time on delivery in every assignment order you paid with us! We ensure premium quality solution document along with free turntin report!

All rights reserved! Copyrights ©2019-2020 ExpertsMind IT Educational Pvt Ltd