crowding out effect
Definition
The impact on private companies when government borrowing increases; as borrowing rises, the prevailing interest rates rise to a point that makes it too costly for corporations to borrow thus affecting their access to debt financing mechanisms.
Related Articles
- What is a Credit Union? *
- Working Less, Retiring Longer *
- Credit Fraud and How to Protect Yourself *
- Four Ways to pay for a Higher Education *
- Does Dollar-Cost Averaging Work With ETFs? *
- Overview of Online Banking and Related Issues *
- Explanation of the Capital Gains Tax and Related Issues *
- The Importance of Saving and How Much To Set Aside *
Related Videos
http://www.businessdictionary.com/definition/crowding-out-effect.html


