Crowding Out
AP Macroeconomics · Flashcards · Application
AP MACROECONOMICS · FLASHCARDS
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QUESTION
Determine the impact of crowding out on private savings.
QUESTION
Estimate the impact of crowding out on interest-sensitive industries.
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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