The crowding-out effect will be minimal when the economy is in a severe recession.

Name: The crowding-out effect will be minimal when the economy is in a severe recession.
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During a severe recession, interest rates are typically low and there is a high demand for government debt. This means that government borrowing may not necessarily lead to a decrease in private investment because private investors may not be willing to invest anyway. In such a scenario, the crowding-out effect may be minimal.

The Crowding-Out Effect Will Be Minimal When the Economy Is