5.5 Crowding Out
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Government increases deficit spending
demand increase, real interest rate increases, and private investment decreases
in the long run an increase in the real interest rate will mean _____ economic growth because investment and capital stock _____
less; decrease
crowding out refers to the decrease in
private investment due to increased borrowing by the government
crowding out
the adverse effect of government borrowing on internet sensitive private sector spending
an increase in the government budget deficit is most likely to result in an increase in which of the following
the real interest rate
