Definition of Crowding out:
Theory that heavy borrowing by a government (which can pay any interest rate) soaks up the available credit, leaving little for the private sector at affordable interest rates. Opponents of this theory point out that new sources of credit emerge at every stage of an interest rate increase.
How to use Crowding out in a sentence?
- You may want to try crowding out another company so that they dont have any way to get a hold of what they need.
- During my campaign, I informed the people how we had to avoid crowding out because it took too much money and hurt us all.
- The crowding out that was occurring in the new government made it unlikely to be able to proceed with borrowing as we had hoped.
Meaning of Crowding out & Crowding out Definition