The crowding-out effect refers to the possibility that deficit spending may motivate people to increase their saving in anticipation of higher future taxes.

Name: The crowding-out effect refers to the possibility that deficit spending may motivate people to increase their saving in anticipation of higher future taxes.
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Question

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The crowding-out effect refers to the idea that increased government borrowing can lead to higher interest rates, which may reduce private investment.

The Crowding-Out Effect Refers to the Possibility That Deficit Spending