_____ is the situation that occurs when government spending replaces spending by the private sector.

Name: _____ is the situation that occurs when government spending replaces spending by the private sector.
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Crowding out occurs when increased government spending leads to a reduction in private sector spending. This can happen because government borrowing to finance its spending can lead to higher interest rates, making it more expensive for the private sector to borrow and invest.

_____ Is the Situation That Occurs When Government Spending Replaces