Will increased government spending always lead to crowding out if the economy is not at full employment?

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Will increased government spending always lead to crowding out if the economy is not at full employment? (Consider the case in which the increased spending involves transfer payments rather than the purchase of goods and services.)

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Financial System Of The Economy Principles Of Money And Banking

ISBN: 9780765622464

5th Edition

Authors: Maureen Burton,Bruce Brown

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Question Posted: Nov 30, 2023 05:28 AM

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Will increased government spending always lead to crowding out if the economy is not at full employment?

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Whether increased government spending will always lead to crowding out if the economy is not at full employment depends on the specific circumstances ...View the full answer

Financial System Of The Economy Principles Of Money And Banking

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