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What do you understand by public crowding out of private sector investments?

In: Business & Finance, Politics and Government [Edit categories]

Answer:

When government gets the deficit generated due to govt spending by borrowing money from the open market ; creating an increase in interest rate ; which eventually demotivates investments in the privates sector it is called public crowding out of private sector investment.

First answer by ID0996135734. Last edit by ID0996135734. Question popularity: 1 [recommend question].

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