Economics · Macroeconomics

The term 'Crowding In' in the context of government expenditure on infrastructure is best associated with which of the following?

Verified Solution4 OptionsUpdated: October 2026👁️1 View

1The phenomenon of the Tertiary Sector expanding much faster than the Secondary Sector.
2Reduced government spending due to fiscal consolidation objectives.
3Public investment stimulating and encouraging complementary private investment.✓
4Government borrowing leading to higher interest rates and discouraging private investment.

Correct answer

Public investment stimulating and encouraging complementary private investment.

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