Google
Saturday 
July 5, 2025 

AmosWEB means Economics with a Touch of Whimsy!

AmosWEBWEB*pediaGLOSS*aramaECON*worldCLASS*portalQUIZ*tasticPED GuideXtra CrediteTutorA*PLS
VOLUNTARY EXCHANGE: The process of willingly trading one item for another. The emphasis here is on "willingly." Voluntary exchanges are the heart and soul of market transactions, and should be contrasted with the "involuntary" exchanges mandated by government taxes, laws, and regulations. While involuntary government-forced exchanges play an important role in a mixed economy, economists really, really like voluntary market exchanges because they promote economic efficiency.

Visit the GLOSS*arama

Most Viewed (Number) Visit the WEB*pedia

CROWDING OUT: A decline in investment caused by expansionary fiscal policy. When government counteracts a recession with an increase in spending or a reduction in taxes (both resulting in an increase in the federal deficit) interest rates tend to increase. Higher interest rates then inhibit business investment in capital goods. Some pointy-headed economists argue that investment crowding out completely offsets any intended expansionary policy, but the jury's still out on this one. To the extend that crowding out occurs, economic growth is reduced if (and this is an important if) government has not seen fit to offset the loss in business investment with public investment in infrastructure, education, or other growth promoting expenditures.

     See also | investment | government purchases | taxes | fiscal policy | expansionary fiscal policy | recession | federal deficit | economic growth | infrastructure | education |


Recommended Citation:

CROWDING OUT, AmosWEB GLOSS*arama, http://www.AmosWEB.com, AmosWEB LLC, 2000-2025. [Accessed: July 5, 2025].


Search Again?

Back to the GLOSS*arama

FIRM OBJECTIVES

The standard economic assumption underlying the analysis of firms is profit maximization. Real world firms, however, might not, and many times do not, make decisions based on the profit-maximization objective, or at least exclusively on the profit-maximization objective. Other objectives include: (1) sales maximization, (2) pursuit of personal welfare, and (3) pursuit of social welfare.

Complete Entry | Visit the WEB*pedia


APLS

YELLOW CHIPPEROON
[What's This?]

Today, you are likely to spend a great deal of time watching the shopping channel trying to buy either one of those memory foam pillows or a remote controlled train set. Be on the lookout for rusty deck screws.
Your Complete Scope

This isn't me! What am I?

A half gallon milk jug holds about $50 in pennies.
"Plans are only good intentions unless they immediately degenerate into hard work."

-- Peter Drucker, management consultant

SPO
Strongly Pareto Optimal
A PEDestrian's Guide
Xtra Credit
Tell us what you think about AmosWEB. Like what you see? Have suggestions for improvements? Let us know. Click the User Feedback link.

User Feedback



| AmosWEB | WEB*pedia | GLOSS*arama | ECON*world | CLASS*portal | QUIZ*tastic | PED Guide | Xtra Credit | eTutor | A*PLS |
| About Us | Terms of Use | Privacy Statement |

Thanks for visiting AmosWEB
Copyright ©2000-2025 AmosWEB*LLC
Send comments or questions to: WebMaster