Explain Why 'Crowding Out' Might Still Occur Even If the Increase

question 20

Essay

Explain why 'crowding out' might still occur even if the increase in government spending is funded by borrowing on global financial markets.
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Definitions:

ROA

Return On Assets, a financial ratio indicating the profitability of a company relative to its total assets, showcasing how efficiently a company uses its assets to generate earnings.

Metric Classification Scheme

A structured framework for categorizing and assessing various metrics or measurements based on predefined criteria to evaluate performance, progress, or outcomes.

SCOR Model

Supply Chain Operations Reference model; a diagnostic tool for supply chain management, covering all business processes and measuring total supply chain performance.

ROA Improvement

Strategies or actions taken to increase the Return On Assets, which measures how efficiently a company uses its assets to generate earnings.