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26 March, 01:50

If the investment accelerator from an increase in government purchases is larger than the crowding-out effect, then

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  1. 26 March, 02:06
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    If the investment accelerator from an increase in government purchases is larger than the crowding out effect, then the multiplier is probably greater than one. The crowding out effect within economics is defined as a theory that when public sector spending rises, it can drive down or eliminate private sector spending. Public sector spending is government spending whereas private sector spending is for-profit businesses that aren't owned or operated by the government.
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