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Reductions in private spending as a result of increased government spending and borrowing is called

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User Aleyda
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The answer is crowding out. Crowding out refers to the reducing in private spending as the end result of the increasing government acquisitions or borrowing. It is a situation wherein the personal consumption of merchandises and amenities, as well as savings by business are reduced because of the government’s spending and lack of resources, which results to the hoarding or sucking up of offered commercial properties and the rise of interest rates.

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User Manab Kumar Mal
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