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AP Macroeconomics
Unit 5 – Long–Run Consequences of Stabilization Policies
Topic 5.5
Unit 5
5.5 Crowding Out
How does crowding out affect infrastructure development?
It improves the quality of infrastructure
It has no effect on infrastructure development
It promotes infrastructure development by increasing investment
It can have a serious impact by discouraging private firms from participating in infrastructure building due to decreased investment
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AP Macroeconomics - 5.5 Crowding Out
Key terms
Crowding Out
Infrastructure Development
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