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Crowding Out Refers to a Diminishment of the Output Gain

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Crowding out refers to a diminishment of the output gain from fiscal stimulus due to


Definitions:

Forward Market

A financial market in which participants can enter into contracts to buy or sell assets at a specified future date and price.

Spot Market

The Spot Market is a public financial market in which financial instruments or commodities are traded for immediate delivery.

Foreign Currency

The currency of another country, which is required for foreign trade and investment.

Hedge

An investment or action taken to reduce the risk of adverse price movements in an asset.

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