The "crowding-out" debate refers to the disagreement between Keynesians and conservative economists about whether

Question

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The "crowding-out" debate focuses on whether increased government borrowing leads to a decrease in private investment spending. Keynesians argued that government spending can stimulate economic activity and increase private investment, while conservatives maintained that increased government borrowing would lead to higher interest rates and reduce private investment. Thus, the correct answer is C, increased government borrowing has an adverse effect on private investment spending.

The "Crowding-Out" Debate Refers to the Disagreement Between Keynesians and Conservative