An increase in the budget deficit increasing the level of investment is known as:

Question

Quizplus · Accepted Answer

The increase in the budget deficit leading to an increase in investment is called the crowding in of investment. This occurs when the government borrows money and spends it on infrastructure, education, or other investments, which stimulates economic activity and encourages private investment as well. It is the opposite of the crowding out effect, which occurs when increased government borrowing leads to higher interest rates and reduces private investment.

An Increase in the Budget Deficit Increasing the Level of Investment