Economics A-Level
Crowding out
What Crowding out means in Economics A-Level, as defined for AQA.
Definitions of Crowding out
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Reference: AQA
A possible consequence of persistent deficits, alongside higher debt interest payments and inflationary pressures.
When government borrowing drives up interest rates and reduces private sector investment.
Topics that use Crowding out
- Fiscal policy (AQA A-Level)
Related terms
- Aggregate demand and supply
- Aggregate supply
- Automatic stabilisers
- Budget balance
- Budget deficit
- Budget surplus
- Direct taxes
- Economic capacity
Using Crowding out in the exam
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