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The trick is for government to know when to pull back and allow private industry to take over the spending. As the economy expands, the

The trick is for government to know when to pull back and allow private industry to take over the spending. As the economy expands, the government can take a step back and allow the industry to foster spending. If the government does not step back then we have what is referred to as the crowding-out effect, meaning the government is crowding out private industry. Why does this happen? Explain.

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