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g increased government spending crowds out investment due to part 4 a. higher interest rates. b. an increased money supply. c. stricter government regulations. d. the existence of interest rate floors.

Sagot :

Because of rising government spending, investment is stifled The economy is currently at full capacity.

There is obviously no pressure on the pricing in any economy that is investment running at full capacity. Any increase in government capacity spending will fully displace investment in this scenario.

A tried-and-true method of making your money work for you while you strive to earn more of it is investing. Warren Buffett, a renowned interest investor, characterized investing as "forgoing consumption now to have capacity the ability to consume more later on."

Regularly investing your money could lead to significant growth over investment time. It's crucial to start investing as soon as you can, ideally as soon as you have any money set aside for it. Additionally, a fantastic place to interest begin is the stock market.

Learn more about investment here

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