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  2. Share Prices
  3. Finance Glossary
  4. Terms Beginning With C
  5. Crowding Out

Crowding Out

Definition of 'Crowding Out'

The reduction in private demand for consumption and investment caused by an increase in government spending, which increases aggregate demand and hence interest rates.

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Related Terms

Accident InsuranceBIMBOBuffer StockSpin OutAccidental Death InsuranceActive FundAppropriate Personal Pension Scheme (APPS)Articles of AssociationAudit TrailBig Bang IIBought DealBudget (National)Cash FlowClient Agreement LetterCompany Buy-BackCredible ThreatDay TraderDepreciationDividend CoverDividend Policy

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