According to Professor Baotai Wang who examined the crowding out phenomenon inCanada between 1961-2000, as discussed in the Case in Point, government expenditures for health and education
A) increased human capital and encouraged private sector investment, leading to crowding in.
B) did not increase the rate of return on private investment and therefore led to crowding out.
C) increased human capital and generated strong supply-side effects.
D) led to only small increases in human capital.
Ans: A) increased human capital and encouraged private sector investment, leading to crowding in.
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