Fiscal Policy
Spending Policy
lags
Automatic Stabilizers
Tax Policy
Supply-Side Economics
An increase in government borrowing G - T raises the interest rate and thus has the potential to lead to less private investment. Government borrowing can then be said to "crowd out" private borrowing. Crowding out was not as serious a concern during the Great Depression as it might be when there is less slack in the economy.
Reference
Fiscal Policy, by David N. Weil, Concise Encyclopedia of Economics.
Return Link: Contents