crowding out/in

[r]

sir do we consider crowding out or in always with respect to government spending..or it can b bcoz of some other reason??

[aditi5000]

only government .. they are the only other sector that competes with firms. unless we consider open economy but not too sure

[Chinni18]

Crowding out is caused by expansionary fiscal policies which raise the interest rates. It may also occur due to fiscal deficits which causes borrowings from foreign sources. Other than govt I dont think anything else causes it.

[ritu]

hi aditi
do u kno how to do questions. 24,26 of dse 2011???

[aditi5000]

No Ritu :( I'm also stuck on those two.. post a new topic naa, let others try.

[r]

thanks both of u...