Define the Crowding-Out Effect

question 66

Essay

Define the crowding-out effect. What factors can influence the extent to which crowding-out occurs when the government implements an expansionary fiscal policy?

---

Definitions:

Electrical Wiring

The system of conductors and other devices used to distribute electricity safely in buildings and machinery.

Restrictive Covenant

Clauses in a deed or lease that limit what the owner of the property or tenant can do with the property.

Public Policy

The unwillingness of the courts to enforce rights that are contrary to the general interests of the public.

Cottage Resort

A vacation facility composed of small, cozy dwellings in a scenic or rural setting, offering a relaxed atmosphere.