Crowding Out Occurs Because Lower Interest Rates Discourage Saving and Make

question 142

True/False

Crowding out occurs because lower interest rates discourage saving and make it harder to borrow.

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Definitions:

Primary Markets

Primary markets are financial markets where new issues of securities, such as stocks and bonds, are sold directly by the issuing company to investors.

Secondary Markets

Markets where investors buy and sell securities they already own, such as the stock market, rather than purchasing new securities directly from the issuer.

Extend Credit

Extend Credit means to allow a customer to purchase goods or services now and pay for them later, essentially providing a loan to the customer.