Question

Crowding out means: A) private savings decreases when the government borrows. B) private investment decreases when the government borrows. C) there are too many players in the financial markets. D) some bond holders will be squeezed out of the market.

Answer 1

Crowding out indicate high interest due to which private investment reduces.

Step-by-step explanation:

Crowding out indicate high interest due to which private investment reduces.

during the competition of borrowing the saving money, the rate of interest rises which affect the private saving to rise.

crowding effects can be decrease by decreasing the rate of interest which increased the supply of currency which directly boost the exports.