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The theoretical framework is contained in:
Crowding out
A situation where increased public sector spending reduces or eliminates private sector spending or borrowing due to higher interest rates.
Government Spending
The total amount of public sector expenditure on goods and services, including investments and transfers, which influences economic activity.
Interest Rates
The cost of borrowing money or the reward for saving, expressed as a percentage of the money borrowed or saved. It influences consumer spending, inflation, and overall economic activity.
Government Purchases
Expenditures by the government on goods and services that are included in the calculation of the country's GDP.
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