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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 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
It improves the quality of infrastructure
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AP Macroeconomics - 5.5 Crowding Out
Key terms
Crowding Out
Infrastructure Development
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