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

Negative profit, Negative profit  FC + VC > R(q) MR > MC ...

Negative profit  FC + VC > R(q) MR > MC    Indicates higher profit at the higher output - Question: Why is profit negative when the output is zero? - Outp

Production function curve, different types of production funtion and curve ...

different types of production funtion and curve given by different economist

Unemployment, causes and effect of the unemployment

causes and effect of the unemployment

Describe the features of monopolistic competition, It is important to under...

It is important to understand the important characteristics of monopolistic competition. The knowledge of these features will enable the students to know how this form of market st

Concept of efficiency, The Concept of Efficiency is stated below: To il...

The Concept of Efficiency is stated below: To illustrate this concept of the efficiency, it is used to expand the understanding of what is meant by the Pareto-efficient allocat

Market structures, implications of market structures on price determination...

implications of market structures on price determination

Price elasticity of demend, hoe does the knowledge of price elasticity of d...

hoe does the knowledge of price elasticity of demand important to the government

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