Government borrowing crowds out private savings as a result of its effects on the loanable funds market.

Name: Government borrowing crowds out private savings as a result of its effects on the loanable funds market.
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Government borrowing does not necessarily crowd out private savings; it can lead to higher interest rates which might attract more savings, or it can be offset by monetary policy actions. Crowding out is more about reducing private investment rather than private savings.

Government Borrowing Crowds Out Private Savings as a Result of Its