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UPSC Indian Economic Service (IES) MCQs
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The term “Crowding Out Effect” refers to:
The term “Crowding Out Effect” refers to:
A. Increase in private investment due to government borrowing
B. Decrease in private investment due to government borrowing
C. Decrease in government expenditure
D. Increase in taxes
Explanation:
Government borrowing reduces available funds for private sector.
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