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Basic Question 1 of 11
Suppose that when government spending increases, firms decrease their levels of investment spending. This is an example of ______.
B. forcing out
C. jamming out
A. crowding out
B. forcing out
C. jamming out
User Contributed Comments 5
| User | Comment |
|---|---|
| danlan | Know what's crowding out and crowding in. |
| moma20 | crowding out means decrease crowding in means increase |
| stevelaz | In out, in out, shake it all about, you do the okey cokey and .......... |
| DariSH | It's better to memorize it like this: Recall: I=PS+T-G; Then just think: when G is bigger than T, it decreases I by eating a part of PS. This is a crowding out effect. |
| chcarnes | Pretty sure it's jamming out |
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Learning Outcome Statements
explain the implementation of fiscal policy and difficulties of implementation as well as whether a fiscal policy is expansionary or contractionary
CFA® 2025 Level I Curriculum, Volume 1, Module 3.