‘Crowding out’ is a term that…

‘Crowding out’ is a term that is often seen in the news. Which of the following results in ‘crowding out’ of private investments?

Miscellaneous

Options

Decreased government spending due to demand slump in the economy.

Increased government spending mainly funded by borrowings.

Decreased private investment due to demand slump in the economy.

Increased private investment but demand slump in the economy.