Economics · Macroeconomics
What is meant by the 'Crowding Out' effect in macroeconomics?
Verified Solution4 OptionsUpdated: October 2026👁️1 View
Share:
- 1A reduction in private investment and spending caused by an increase in government borrowing and spending✓
- 2An increase in net exports resulting from currency depreciation
- 3A decrease in private consumption caused by higher import tariffs
- 4Forced relocation of private industries due to zoning laws
Correct answer
A reduction in private investment and spending caused by an increase in government borrowing and spending
Download Single Question PDF
Save this question and verified answer as a clean study sheet with live clickable link.
👥
Share with Friends & Study Groups
Challenge your peer aspirants on WhatsApp or Telegram to solve this question!
Online Test Series
Start Free Mock Test →Preparing for Economics?
Practice full-length mock tests with real exam timers, instant score analysis, and all-India ranking.
Chapter Practice
Practice Macroeconomics MCQs →Want more practice questions on Macroeconomics?
Solve complete topic-wise tests with detailed solutions on GkGet.
Related Practice Questions
Recommended practice questions in Economics · Macroeconomics