"Crowding out" caused by deficit financing can result in tighter credit conditions and higher interest rates.

Name: "Crowding out" caused by deficit financing can result in tighter credit conditions and higher interest rates.
Brand: Quizplus
Rating: 4.9 (49 reviews)

Question

Quizplus · Accepted Answer

Crowding out occurs when the government borrows a lot of money, causing interest rates to rise and making it harder for businesses and consumers to borrow. As a result, credit conditions can become tighter and interest rates can increase.

"Crowding Out" Caused by Deficit Financing Can Result in Tighter