The Crowding-Out Effect Occurs Because an Increase in Government Spending

question 137

Short Answer

The crowding-out effect occurs because an increase in government spending _____ interest rates, causing _____ to fall.

---

Definitions:

Minimize Button

A button typically found in a window's title bar, used to reduce the window to an icon or taskbar entry, while keeping the application running.

Taskbar Icon

A small graphical representation or shortcut placed on the taskbar, providing quick access to applications or functions.

Title Bar

The horizontal bar at the top of a window that displays the name of the application and the current document or file.

Boot Process

The sequence of operations that a computer system goes through when it is turned on, culminating in it being ready for use.