The idea that a government budget deficit decreases investment is called

Question

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The crowding-out effect refers to the situation where increased government borrowing leads to higher interest rates, which in turn reduces private investment. When the government runs a budget deficit and borrows to finance it, this increased demand for loanable funds can push up interest rates, making borrowing more expensive for businesses and individuals. As a result, private sector investment may decrease because of the higher cost of financing.

The Idea That a Government Budget Deficit Decreases Investment Is