An example of crowding-out would be the

Question

Quizplus · Accepted Answer

Crowding-out refers to the phenomenon of government spending leading to a reduction in private investment. In other words, when the government borrows funds to finance its spending, it competes with private borrowers (such as businesses) for those funds, driving up interest rates and making it less attractive for businesses to invest in new projects or expand existing ones. This can lead to a reduction in overall investment, which can harm economic growth in the long run. Option B is the best answer because it describes exactly this scenario. Options A, C, and D do not describe crowding-out specifically, but rather other economic effects of government spending.

An Example of Crowding-Out Would Be the