The tendency for a government budget deficit to decrease investment is called the

Name: The tendency for a government budget deficit to decrease investment is called the
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The term for the tendency of a government budget deficit to decrease investment is called the crowding-out effect. This occurs because the government must borrow more money to finance its deficit, which raises interest rates and makes borrowing more expensive for private investors, leading to a decrease in investment.

The Tendency for a Government Budget Deficit to Decrease Investment