Crowding out occurs when the federal government1 refinances, Ask an Expert

Economics

Crowding out occurs when the federal government:

1. Refinances maturing U.S. Treasury bonds.

2. Raises taxes to finance a budget deficit.

3. Uses a budget surplus to pay off part of the national debt.

4. Borrows by selling bonds to finance a deficit.

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Microeconomics, Economics

Category:- Microeconomics
Reference No.:- M91224746

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