A Crowding-Out Effect Occurs When Government Borrowing Raises Interest Rates

question 117

True/False

A crowding-out effect occurs when government borrowing raises interest rates and discourages investment spending.

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Definitions:

Leaning Forward

A physical or metaphorical posture indicating interest, attention, or readiness to engage in an activity or conversation.

Crossing Legs

A posture where one leg is placed over the other while sitting, often interpreted in various cultural and social contexts.

Open Question

A type of question that cannot be answered with a simple yes or no, encouraging a detailed response and further discussion.

Marriage Trouble

Difficulties or conflicts encountered in a marital relationship that may threaten its stability or integrity.