The crowding-out effect describes how a government budget ________ ________ the real interest rate and thereby ________ equilibrium investment.

Name: The crowding-out effect describes how a government budget ________ ________ the real interest rate and thereby ________ equilibrium investment.
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The crowding-out effect occurs when a government budget deficit raises the real interest rate, which decreases equilibrium investment by making borrowing more expensive for the private sector.

The Crowding-Out Effect Describes How a Government Budget ________ ________

The Crowding-Out Effect Describes How a Government Budget