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What set of conditions, working together, will make the atmosphere the most unstable ?
Crowding-out Effect
A situation where increased government spending leads to a reduction in private sector investment, due to the government borrowing absorbing a larger share of available financial resources.
Expansionary Fiscal Policy
involves government spending and tax cuts to stimulate the economy during a recession.
Net Investment Spending
Represents the total amount spent on new capital assets minus the depreciation of existing assets, indicating how much a company is investing in its future growth.
Fiscal Policy
Government policies regarding taxation and spending to influence the economy.
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