https://www.proz.com/kudoz/english/economics/1617802-crowding-out-effect.html

crowding - out effect

07:17 Oct 31, 2006
English language (monolingual) [Non-PRO]
Bus/Financial - Economics / macroeconomics
English term or phrase: crowding - out effect
related to macroeconomics
konika dogra


SUMMARY OF ALL EXPLANATIONS PROVIDED
4relates to investment
BrigitteHilgner


Discussion entries: 1





  

Answers


30 mins   confidence: Answerer confidence 4/5Answerer confidence 4/5
relates to investment


Explanation:
quote from Samuelson/Nordhaus: Economics, 18. edition
page 713
As output and inflation rise, interest rates are likely to rise and the foreign exchange rate is likely to appreciate (if the country has a floating exchange rate). The rising interest rates and appreciated currency will tend to choke off or "crowd out" domestic and foreign investment.
Not really a kudoz question - rather something for economists.

BrigitteHilgner
Austria
Local time: 12:20
Native speaker of: Native in GermanGerman
PRO pts in category: 4
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