In the context of budget deficits, what is crowding out?
(A) when government borrowing leads to higher interest rates and corresponding decreases in private investment
(B) when a multiplier effect magnifies the effect of increases in income and decreases in consumer spending
(C) when government spending encourages additional levels of consumption and investment from the private sector
(D) when budget surpluses cause firms to undertake increased levels of investment
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Home » Business » In the context of budget deficits, what is crowding out? (A) when government borrowing leads to higher interest rates and corresponding decreases in private investment (B) when a multiplier effect magnifies the effect of increases in income and