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Fiscal Policy

Spending Policy

lags

Automatic Stabilizers

Tax Policy

Supply-Side Economics

Crowding Out

An increase in government borrowing G - T raises the interest rate and thus has the potential to lead to less private investment.  Government borrowing can then be said to "crowd out" private borrowing.  Crowding out was not as serious a concern during the Great Depression as it might be when there is less slack in the economy.

extended discussion

Reference

Fiscal Policy, by David N. Weil, Concise Encyclopedia of Economics.


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