Why does fiscal policy have a smaller effect on aggregate demand the greater the crowding-out effect?

Question:

Why does fiscal policy have a smaller effect on aggregate demand the greater the crowding-out effect?

Fantastic news! We've Found the answer you've been seeking!

Step by Step Answer:

Related Book For  book-img-for-question

Exploring Economics

ISBN: 9781544336329

8th Edition

Authors: Robert L. Sexton

Question Posted: