The tendency for higher government budget deficits to decrease investment is called the

Name: The tendency for higher government budget deficits to decrease investment is called the
Brand: Quizplus
Rating: 4.9 (54 reviews)

Question

Quizplus · Accepted Answer

The crowding-out effect is the tendency for higher government budget deficits to decrease investment, as the government borrows more money, increasing interest rates and making it more expensive for businesses to borrow and invest. This can lead to a decrease in overall economic output and growth.

The Tendency for Higher Government Budget Deficits to Decrease Investment