What is the crowding out effect of budget deficits

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Reference no: EM131808474

Based on the book Answer the following question

1. What is the "crowding out" effect of budget deficits? What determines whether crowding out leads to a minor or major reduction in the impact of expansionary fiscal policies on Aggregate Demand? How is it related to the massive fiscal deficit forecast under Obama Administration?

Reference no: EM131808474

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