Economics
Textbooks
Boundless Economics
Fiscal Policy
Evaluating Fiscal Policy
Economics Textbooks Boundless Economics Fiscal Policy Evaluating Fiscal Policy
Economics Textbooks Boundless Economics Fiscal Policy
Economics Textbooks Boundless Economics
Economics Textbooks
Economics
Concept Version 5
Created by Boundless

Crowding-Out Effect

Crowding out Chart

Crowding out Chart

When crowding-out occurs, the Investment-Savings (IS) curve moves to the right, causing higher interest rates (i) and expansion in the "real" economy (real GDP, or Y). LM stands for Liquidity Preference - Money Supply.

Source

    Boundless vets and curates high-quality, openly licensed content from around the Internet. This particular resource used the following sources:

    "Islm."
    http://en.wikipedia.org/wiki/File:Islm.svg Wikipedia GNU FDL.

Related Terms

  • interest rate
  • Subjects
    • Accounting
    • Algebra
    • Art History
    • Biology
    • Business
    • Calculus
    • Chemistry
    • Communications
    • Economics
    • Finance
    • Management
    • Marketing
    • Microbiology
    • Physics
    • Physiology
    • Political Science
    • Psychology
    • Sociology
    • Statistics
    • U.S. History
    • World History
    • Writing

    Except where noted, content and user contributions on this site are licensed under CC BY-SA 4.0 with attribution required.