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Topic Crowding out
Asked 2 times across 2 UPSC exams over 5 years (2018–2023), peaking in 2018.
Key insights
- Most tested in CAPF — 1 of 2 PYQs
- Most asked in 2018
- Recurs across 2 years (2018–2023)
How it travelled across exams
First appearance in each exam — the same idea, reframed.
CAPF 2018 → CDS 2023
How the concept evolved
Rising — more than half its appearances (2 of 2) are since 2016.
Related concepts
Ideas UPSC tests alongside this one — keep exploring.
Sample questions
You've seen the pattern — here are a few of the actual PYQs.
CDS2023
The contraction of private investment spending due to deficit spending by the Government is called
- A crowding out ✓
- B crowding in
- C pump priming
- D dumping
✓ Correct answer: (A)
Economy › Public Finance & Budget
CAPF2018
If farmers' loans are waived in India, how will it affect the aggregate demand in the economy?
- Private consumption impact via increase in private sector net wealth
- Public sector impact via changes in government expenditure/taxes
- Crowding-out impact via higher borrowings by State Governments
- Crowding-in impact via higher credit availability as bank NPAs fall
Select the correct answer using the code given below.
- A 1, 2 and 3 only
- B 1, 2, 3 and 4 ✓
- C 3 and 4 only
- D 1 and 2 only
✓ Correct answer: (B)
Economy › Agricultural Economy
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