[{"data":1,"prerenderedAt":58},["ShallowReactive",2],{"term:crowding-out":3},{"term":4,"related":45},{"id":5,"title":6,"body":7,"category":27,"description":28,"extension":29,"faq":30,"meta":31,"navigation":32,"path":33,"related":34,"seo":38,"stem":39,"takeaways":40,"__hash__":44},"terms\u002Fterms\u002Fcrowding-out.md","Crowding Out",{"type":8,"value":9,"toc":22},"minimark",[10,15,19],[11,12,14],"h2",{"id":13},"understanding-crowding-out","Understanding Crowding Out",[16,17,18],"p",{},"If the government borrows heavily while the economy is near full capacity, it competes with private borrowers for savings, raising interest rates and reducing private investment.",[16,20,21],{},"Crowding out is weaker in deep recessions, when savings are plentiful and interest rates are near zero.",{"title":23,"searchDepth":24,"depth":24,"links":25},"",2,[26],{"id":13,"depth":24,"text":14},"economy","When government borrowing reduces private investment by pushing up interest rates.","md",[],{},true,"\u002Fterms\u002Fcrowding-out",[35,36,37],"fiscal-multiplier","is-lm-model","fiscal-policy",{"title":6,"description":28},"terms\u002Fcrowding-out",[41,42,43],"Government borrowing can raise interest rates.","Higher rates can reduce private investment.","The effect is strongest near full employment.","oL-_sHVz-Yh2GEwgS3NVPm4FGyTfiNoSpvZH6rAbKFQ",[46,50,54],{"title":47,"description":48,"path":49},"Fiscal Multiplier","How much total output changes for each dollar of government spending or tax cuts.","\u002Fterms\u002Ffiscal-multiplier",{"title":51,"description":52,"path":53},"Fiscal Policy","The use of government spending and taxes to influence the economy.","\u002Fterms\u002Ffiscal-policy",{"title":55,"description":56,"path":57},"IS–LM Model","A model of how interest rates and output are jointly set by the goods market and the money market.","\u002Fterms\u002Fis-lm-model",1793374004863]