According to the crowding-out view, budget deficits will:

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Business

Raina Walls

12 March, 05:55

According to the crowding-out view, budget deficits will:

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Shaniya · Answer 1

According to the crowding-out view, budget deficits will increase the interest rates and reduce private investments.

The crowding-out view stops investors from investing as much or willingly due to high interest rates. On the opposite end, crowding-in has more investors spending due to an increase in demand for the goods.