________ is/are what may happen when the central government needs to borrow to finance its deficit to the detriment of private firms.

Question

Quizplus · Accepted Answer

Crowding out occurs when the government's borrowing increases the demand for loanable funds, which raises interest rates and reduces the amount of funds available for private investment. This can hinder the growth of private firms and cause a decrease in the economy's productivity.

________ Is/are What May Happen When the Central Government Needs