![]() 1,077,332,603 visitors served. |
|
![]() Dictionary/ thesaurus | ![]() Medical dictionary | ![]() Legal dictionary | ![]() Financial dictionary | ![]() Acronyms | ![]() Idioms | ![]() Encyclopedia | ![]() Wikipedia encyclopedia | ? |
Crowding Out Effect |
0.42 sec. |
|
Crowding Out Effect An economic theory explaining an increase in interest rates due to rising government borrowing in the money market. Notes: Governments often borrow money (by issuing bonds) to fund additional spending. The problem occurs when government debt 'crowds out' private companies and individuals from the lending market.Increased government borrowing tends to increase market interest rates. The problem is that the government can always pay the market interest rate, but there comes a point when corporations and individuals can no longer afford to borrow. How to thank TFD for its existence? Tell a friend about us, add a link to this page, add the site to iGoogle, or visit webmaster's page for free fun content. |
|
? Mentioned in | |
|---|---|
|
| Free Tools: |
For surfers:
Browser extension |
Word of the Day |
Help
For webmasters: Free content | Linking | Lookup box | Double-click lookup | Partner with us |
|
|---|