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  • Of The Fiscal Change On The Country'S Domestic Product Are Reduced by International Crowding Out. Y Toy

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    Dilan Halai
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    International crowding out occurs when a country increases government spending or cuts taxes, which raises its interest rates and strengthens its currency. This makes the country's exports more expensive and imports cheaper, reducing demand for the country's goods and offsetting some of the stimulus to its domestic product from the fiscal change. The positive effects of fiscal stimulus on a country's domestic product are reduced when international crowding out occurs.

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    its answers

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    ECN391

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    International crowding out occurs when a country increases government spending or cuts taxes, which raises its interest rates and strengthens its currency. This makes the country's exports more expensive and imports cheaper, reducing demand for the country's goods and offsetting some of the stimulus to its domestic product from the fiscal change. The positive effects of fiscal stimulus on a country's domestic product are reduced when international crowding out occurs.

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    © All Rights Reserved
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    3 views1 page

    Of The Fiscal Change On The Country'S Domestic Product Are Reduced by International Crowding Out. Y Toy

    Uploaded by

    Dilan Halai
    International crowding out occurs when a country increases government spending or cuts taxes, which raises its interest rates and strengthens its currency. This makes the country's exports more expensive and imports cheaper, reducing demand for the country's goods and offsetting some of the stimulus to its domestic product from the fiscal change. The positive effects of fiscal stimulus on a country's domestic product are reduced when international crowding out occurs.

    Copyright:

    © All Rights Reserved
    Download as DOCX, PDF, TXT or read online from Scribd
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