"Crowding out" is the theory that an increase in our federal government's budget deficit will likely:

Question

Quizplus · Accepted Answer

Crowding out refers to the situation where increased government borrowing leads to higher interest rates, which in turn reduces private investment and consumption. This can increase the national debt, raise interest rates, decrease borrowing by households and businesses, and reduce the effectiveness of the spending multiplier.

"Crowding Out" Is the Theory That an Increase in Our