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    Economics Principles and Policy Study Set 2
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    Exam 32: Budget Deficits in the Short and Long Run
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    What Is "Crowding Out"? Why Is It Important in Discussions
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What Is "Crowding Out"? Why Is It Important in Discussions

Question 127

Question 127

Essay

What is "crowding out"? Why is it important in discussions of fiscal policy? Use an appropriate diagram to illustrate your answer.

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Crowding out occurs when deficit spendin...

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