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What Is Crowding Out?

169.9K views
•
July 3, 2018
by
Marginal Revolution University
YouTube video player
What Is Crowding Out?

Transcript

♪ [music] ♪ - [Narrator] What is "crowding out"? Crowding out is a term used to describe a situation when expansionary fiscal policies decrease or "crowd out" private spending. Imagine an economy that's operating at full employment -- workers have jobs, and factories are operating near capacity. If the federal government tries to increase spending ... Read More

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