Macroeconomics

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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.... -

    Can you please explain using an example?

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