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What is the crowding-out effect

What is the crowding-out effect
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What is the crowding-out effect

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User Pben
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Definition: A situation when increased interest rates lead to a reduction in private investment spending such that it dampens the initial increase of total investment spending is called crowding out effect.
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User Spialdor
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It is the loss of funds for private investment due to government borrowing.

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User The Governor
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