Crowding Out
AP Macroeconomics · Flashcards
AP MACROECONOMICS · FLASHCARDS
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QUESTION
What happens to the economy's total investment during crowding out?
QUESTION
What is the impact of crowding out on foreign investment?
QUESTION
Determine the impact of crowding out on private savings.
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ANSWER
Private savings may increase to offset higher interest rates. Higher rates provide incentive to save more.
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