A crowding-out effect occurs when government borrowing raises interest rates and discourages investment spending.

Name: A crowding-out effect occurs when government borrowing raises interest rates and discourages investment spending.
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This is correct. Crowding-out effect is an economic phenomenon where government borrowing increases interest rates, which then reduces investment spending by private investors due to higher costs of borrowing.

A Crowding-Out Effect Occurs When Government Borrowing Raises Interest Rates