Explain the crowding-out hypothesis explain the crowding-in


1. Discuss the history of the financial system. Why did stock and financial markets develop? Define direct finance and indirect finance

2. Explain the ‘crowding-out’ hypothesis. Explain the ‘crowding-in’ hypothesis. Discuss the problems with deflation.

3. Discuss in full the theoretical basis for supply-side economic policy. Discuss the theoretical criticisms of ‘supplyside’ economic policy.

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Financial Management: Explain the crowding-out hypothesis explain the crowding-in
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