The concept that increased government spending will lead to lower investment and consumer spending is referred to as the

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The concept of increased government spending leading to lower investment and consumer spending is referred to as the crowding-out effect. This is because government borrowing tends to increase interest rates, making borrowing more expensive for businesses and individuals. As a result, they may reduce their spending and investment activities. The other options are not relevant to this concept.

The Concept That Increased Government Spending Will Lead to Lower