The crowding-out effect may be dampened if the investment-demand curve is shifting to the right.

Name: The crowding-out effect may be dampened if the investment-demand curve is shifting to the right.
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If investment demand shifts to the right, it means that firms are more willing to invest at any given interest rate. This could lead to an increase in overall investment, which may offset the decrease in government spending due to crowding out. Therefore, the crowding-out effect may be dampened.

The Crowding-Out Effect May Be Dampened If the Investment-Demand Curve