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1.What is the crowding-out effect as it related to attempts to stimulating the economy through government spending? How might it reduce the effectiveness of fiscal

1.What is the "crowding-out effect" as it related to attempts to stimulating the economy through government spending? How might it reduce the effectiveness of fiscal policy? When is the crowding-out effect likely to be smaller? Do Keynesians believe the crowding-out effect is large?

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