Budgeting and Fiscal policy

Indian Economic System

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Indian Economy - Understanding the basics of Indian economic system

Crowding out of private investment by government will imply:

Higher private sector borrowing reducing size of government borrowing.

Higher government borrowing reducing size of private sector borrowing.

Private sector being allowed to invest more in government securities.

Private sector being restricted to invest more in government securities.

Crowding out of private investment by government will imply higher government borrowing reducing size of private sector borrowing.