According to the crowding-out effect,what will occur if the federal government borrows to finance deficit spending?

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The crowding-out effect posits that when the government borrows to finance deficit spending, the increased demand for loanable funds will drive up interest rates, making it more expensive for private individuals and businesses to borrow. This results in a decrease in private investment and consumption, as individuals and businesses become less willing to borrow at the higher interest rates. Therefore, the demand for loanable funds will increase, driving interest rates up, and ultimately crowding out private investment.

According to the Crowding-Out Effect,what Will Occur If the Federal