2021 · Q4
The increase in private investment spending induced by the increase in Government spending is known as
General KnowledgeIndian Economy
- ACrowding in
- BDeficit financing
- CCrowding out
- DPumping out General Knowledge M.M. : 100 comprises four responses (answers). You will select the response feel that there is more than one correct response, mark the response response for each item. Answer Sheet provided. See directions in the Answer Sheet. mArked by A cAndidATe in The ObjecTive TyPe For each question for which a wrong answer has been given to that question will be deducted as penalty. be treated as a wrong answer even if one of the given answers as above to that question. the candidate, there will be no penalty for that question.
Explanation
Crowding in occurs when increased government spending stimulates or induces greater private investment spending, for example by building infrastructure that raises private returns. Crowding out is the opposite — government borrowing driving up interest rates and reducing private investment. Deficit financing is the funding of a deficit through borrowing or money creation, not induced private investment. The question describes induced private investment, hence crowding in.