11. Crowding Out Suppose there is an economy where the government is causing crowding out. What is happening? O The government is increasing infrastructure spending, which requires an increase in the money.r supply, crowding out the nancial system from the supply.r of loa nable funds 0 The government is employing a large share of the skilled workforcer crowding out the private sector from recruiting good people 0 The government is running a budget decit, which crowds out other savers. reducing savings from the private sector 0 The government is absorbing a lot of the available savings, crowding out investors from accessing loanable funds