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An Earlier Chapter Discussed the Issue of Crowding Out

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An earlier chapter discussed the issue of crowding out.Crowding out refers to the idea that a budget deficit will add government borrowing to other demands for loans,driving up the interest rate,which will reduce private investment.How do international considerations (the possibility that the debt is purchased by foreigners)affect this issue? Is it possible to internationalize the debt? Does that mean that crowding out is not a problem in this case?


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The state of complete physical, mental, and social well-being, and not merely the absence of disease or infirmity.

Type A

character traits include competitiveness, impatience, and a constant sense of urgency, often linked to stress-related health issues.

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A psychological construct representing the experience of distressing emotions such as anger, guilt, and sadness.

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A psychological attribute that reflects the extent to which individuals hold generalized favorable expectancies for their future.

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