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Define Crowding Out

question 89

Essay

Define crowding out.Give a hypothetical numerical example to show the difference between complete crowding out and incomplete crowding out.Explain how complete and incomplete crowding out could impact the effectiveness of fiscal policy.


Definitions:

Repression

A defense mechanism in psychoanalytic theory where distressing thoughts and memories are unconsciously blocked from conscious awareness.

Mechanisms

The structures or processes that produce a particular effect or fulfill a function within a system.

Mathematical Ability

The capacity to understand, analyze, and apply mathematical concepts and principles.

American Counterparts

Refers to entities or individuals in the United States that have a role, function, or aspect similar to those in another country or context.

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