Answer to Question #111676 in Finance for Anntonette

Question #111676
Hos does government investment compliment private investment?
1
Expert's answer
2020-04-23T11:47:09-0400

On the one hand, an increase of government investment may directly and indirectly crowd out private investment. Firstly, a rise of government investment needs to be financed, which means the government sector will compete with the private sector for funds in the capital markets, causing the interest rate to rise




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