What does the term ‘Crowding Out Effect’ refer to in economics? - Study24x7
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Dev kumar
08 Sep 2025 06:03 PM study24x7 study24x7

What does the term ‘Crowding Out Effect’ refer to in economics?

A

The dominance of private investment over public investment

B

Reduction in private investment due to an increase in government borrowing

C

Increase in inflation caused by excessive government expenditure

D

Growth in employment opportunities due to public sector projects.

UPSC
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