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Crowding Out
The phenomenon where increased government spending leads to a reduction in private sector spending or investment, often due to higher interest rates.
Domestic Investment
Domestic investment refers to the total spending on capital within a country that is used for the production of goods and services.
Loanable Funds
The money available for borrowing in the financial markets, determined by savings and demands for loans.
Foreign-Currency Exchange
The process of converting one currency into another currency, a key element in international trade and investment.
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