Crowding in Effect refers to the effect that when the government adopts expansionary fiscal policy, it can induce the increase of private consumption and investment, so as to increase the total output or employment; Crowding out Effect refers to the effect of reducing private consumption or investment with the increase of government expenditure when there is a new increase in supply and demand, which will lead to the crowding out of some funds from the original advance and flow into new commodities
According to the above definition, which of the followings belongs to Crowding out Effect:
Due to the increase of school-age children, the local government has increased capital investment in school infrastructure and reduced tuition and miscellaneous fees, so the proportion of local families applying for art classes for children has increased