One concern about the government borrowing in order to finance its projects is known as the "crowding out effect". This can best be described as
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One concern about the government borrowing in order to finance its projects is known as the "crowding out effect". This can best be described as
an decrease in the demand curve, which decreases equilibrium nominal interest rates, making it easier for private businesses to obtain loans.
an increase in the demand curve, which increases equilibrium nominal interest rates, making it more difficult for private businesses to obtain loans.
an increase in the supply curve, which decreases equilibrium nominal interest rates, making it easier for private businesses to obtain loans.
a decrease in the supply curve, which increases equilibrium nominal interest rates, making it more difficult for private businesses to obtain loans.
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