Answer:
b. a larger debt ceiling
Explanation:
Government spending is a situation where the government supports businesses with cash or other forms of capital in capital projects.
Therefore, crowding out effect happens when increased government spending makes for a spike in rates in the economy.
As a result of this, this results in b. a larger debt ceiling because the government is increasing the spending on private businesses.
Answer:
B. a larger debt ceiling.
Explanation:
The crowding out effect is an economic theory arguing that rising public sector spending drives down or even eliminates private sector spending.
