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    Economics Principles and Policy Study Set 1
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    Exam 33: Budget Deficits in the Short and Long Run
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    The "Crowding Out" Effect States That Government Spending Pushes Up
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The "Crowding Out" Effect States That Government Spending Pushes Up

Question 97

Question 97

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The "crowding out" effect states that government spending pushes up interest rates and reduces private investment spending.

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