Mainstream economists use the notion of "crowding out" to argue that public spending squeezes out private spending and results in a less efficient allocation of resources overall. Modern Monetary Theory (MMT) argues that the mainstream economists do not understand that the government only borrows what it has already spent. But MMT still recognise that crowding out can occur.
Answer: True
For more information please read - Deficits are here to stay get used to it - or post a comment.