Essay
Consider the following quote from your text,"Some economists see the crowding out effect as relatively large,in many cases almost completely negating the effect of expansionary fiscal policy." Demonstrate graphically the case where the crowding out effect does "completely negate" the effect of expansionary fiscal policy.Explain your diagram,making sure to define the crowding out effect in your answer.
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Crowding out refers to the offsetting ef...View Answer
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Correct Answer:
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