According to Professor Baotai Wang who examined the crowding out phenomenon inCanada between 1961-2000, as discussed in the Case in Point, government expenditures for health and education
A) increased human capital and encouraged private sector investment, leading to crowding in.
B) did not increase the rate of return on private investment and therefore led to crowding out.
C) increased human capital and generated strong supply-side effects.
D) led to only small increases in human capital.
Ans: A) increased human capital and encouraged private sector investment, leading to crowding in.
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An international organization that buys and sells a commodity to maintain its price is a
a. buffer stock b. common fund c. commodity stabilization fund d. customs union e. all of the above
Which of the following describes the vicious circle of poverty?
a. Because resources are limited, all economies eventually become poor. b. In the long run, economies cycle between being rich and being poor.c. For an economy to grow requires more consumption goods, which requires less capital goods, which means it will eventually become poor d. Due to excessive consumption, rich economies will destroy their resource base and eventually become poor. e. Poor economies are poor because they do not produce sufficient capital goods, and without the production of sufficient capital goods, they remain poor.