What does crowding-out effect in a closed economy mean in simple terms?
So...if there is 0 crowding-out effect, does it means that the investment/savings stays the same? Actually... I don't see how savings is directly affected by this effect... By the way, does this effect only occur in a fiscal policy?
Thanks in advance.
More to the question.... - Anonymous, Sunday, September 27, 2009 at 11:51am
Can you please explain using an example?