Crowding out effect

Crowding out effect,

Definition of Crowding out effect:

  1. The crowding out effect is an economic theory arguing that rising public sector spending drives down or even eliminates private sector spending.

  2. One of the most common forms of crowding out takes place when a large government, like that of the U.S., increases its borrowing. The sheer scale of this borrowing can lead to substantial rises in the real interest rate, which has the effect of absorbing the economy's lending capacity and of discouraging businesses from making capital investments.

  3. The impact on private companies when government borrowing increases; as borrowing rises, the prevailing interest rates rise to a point that makes it too costly for corporations to borrow thus affecting their access to debt financing mechanisms.

How to use Crowding out effect in a sentence?

  1. Crowding in, on the other hand, suggests government borrowing can actually increase demand by generating employment, thereby stimulating private spending.
  2. The crowding out effect suggests rising public sector spending drives down private sector spending.
  3. There are three main reasons for the crowding out effect to take place: economics, social welfare, and infrastructure.

Meaning of Crowding out effect & Crowding out effect Definition

Crowding Out Effect,

Crowding Out Effect:

Definition of Crowding Out Effect: Migration is an economic theory that states that an increase in public sector spending reduces or even eliminates private sector spending.

  • Crowds show that increasing public sector spending reduces private sector spending.
  • There are three main reasons for the impact of migration: economic, social security and infrastructure.
  • On the other hand, selling sheep shows that government loans can, in fact, increase demand, create jobs, and thus stimulate private spending.

Literal Meanings of Crowding Out Effect


Meanings of Crowding:
  1. Many people started gathering, disorganizing or revolting.

  2. Almost completely (by some people) filled (a room) with little or no room to move.

  3. Very close to (someone)

  4. Exclude someone or something that takes your place.

Sentences of Crowding
  1. Outside, a large crowd gathered on the street

  2. The dance floor is full of night potatoes

  3. Don't press, air is needed

  4. Pulses replace low-growing plants

Synonyms of Crowding

throng, horde, mob, rabble, large number, mass, multitude, host, army, herd, flock, drove, swarm, sea, stream, troupe, pack, press, crush, flood, collection, company, gathering, assembly, assemblage, array, congregation, convention, concourse


Meanings of Out:
  1. Move or be seen away from certain places, especially closed or hidden places

  2. The hotel is somewhere or a short distance away.

  3. (Light or fire) so that it comes out or stops burning.

  4. (By jury) keeping his decision secret.

  5. Set a specific distance from the finish line or finish line.

  6. (Party, politicians, etc.) are not currently in office.

  7. Both at home and at work.

  8. Published or published

  9. (Flower) blooms.

  10. No more worries.

Sentences of Out
  1. The process takes seven business days and the jury is absent for about seven hours before being found guilty in item 1 and considering items 2 and 3.

  2. He should remain in office until his party rejects him or the electorate rejects him.

  3. When he calls, suppose you're out

  4. June is the best time to visit Umbria, when the pupae come out.

  5. There is a fire

  6. The school is out in the summer

  7. The beach trip is over

  8. He's been missing since I put him on the couch. Hell is unconscious for a while.

  9. He came a little late on his own

  10. Yankees is ninth

  11. The biggest difference between the two is the number of defeats that these two players have produced over their careers.

  12. The first Australian Labor Party, which was highly critical of the complexities of colonial politics, wanted the people to govern more directly.

Synonyms of Out

not here, not at home, not in, gone away, away, elsewhere, absent, away from one's desk, revealed, common knowledge, public knowledge, known, disclosed, divulged, exposed, in flower, flowering, in bloom, in full bloom, blooming, in blossom, blossoming, open, not burning, extinguished, no longer alight, quenched, doused


Meanings of Effect:
  1. A change that is the result or consequence of an action or other cause.

  2. Lighting, sound or stage is used in a game, movie or program.

  3. Personal issues

  4. Because (something) is about to happen.

Sentences of Effect
  1. The deadly effects of severe drugs

  2. Production also depends on the amazing effects

  3. Insurance includes personal items

  4. Nature is always healing

Synonyms of Effect

affect, influence, exert influence on, act on, work on, condition, touch, interact with, have an impact on, impact on, take hold of, attack, infect, strike, strike at, hit, belongings, possessions, personal possessions, personal effects, goods, worldly goods, chattels, goods and chattels