Detailed explanation and options for the selected question.
What is meant by “crowding out” in economics?
A.
Government investment in private projects
B.
Government borrowing reducing private investment
C.
Excess supply in the market
D.
Rise in unemployment due to automation
Explanation:
Crowding out occurs when excessive government borrowing limits private investment by increasing interest rates. The other options do not relate to this term.
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Five-Year Plans and Transition to New Planning Framework