'Crowding out' is more likely to occur when:

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Economics · Macroeconomics

Verified Solution4 OptionsUpdated: October 2026👁️1 View

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the demand for money is interest-insensitive and private sector spending is largely interest-sensitive

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Answer 1

the demand for money is interest-insensitive and private sector spending is largely interest-sensitive

Answer 2

the demand for money is interest-sensitive and private sector spending is largely interest-insensitive

Answer 3

both the demand for money and private sector spending are interest-sensitive

Answer 4

both the demand for money and private sector spending are interest-insensitive

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