Consider the often debated crowding-out and crowding-in concepts.  Also consider expansionary fiscal policy with respect to increased government (deficit) spending.      Describe how the two concepts are different.    2. Which concept do you think makes more sense during a recessionary period?

Exploring Economics
8th Edition
ISBN:9781544336329
Author:Robert L. Sexton
Publisher:Robert L. Sexton
Chapter24: Fiscal Policy
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Consider the often debated crowding-out and crowding-in concepts.  Also consider expansionary fiscal policy with respect to increased government (deficit) spending.   

 

  1. Describe how the two concepts are different. 

 

2. Which concept do you think makes more sense during a recessionary period? 

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