Which of the following terms describes the tendency for larger government borrowing to increase interest rates?
A) expansionary monetary policy
B) contractionary fiscal policy
C) industrial policy
D) crowding out
E) crowding in

Question

Quizplus · Accepted Answer

The term "crowding out" describes the phenomenon where increased government borrowing leads to higher interest rates, which can reduce private investment because the government competes with the private sector for financial resources.

Which of the Following Terms Describes the Tendency for Larger