If government borrows to cover budget deficits, and everything else is held constant, what is proposed by the crowding out concept is that interest rates spending and borrowing by households and businesses.

The correct words for the blank spaces are: increasing; decrease.

Explanation:

Crowding Out Effect is an economic term that refers to government spending that pushes private sector spending down and can have more specific consequences. Crowding Out can refer to when government borrowing absorbs all of the economic lendings that are available. This causes increases in interest rates. As a result, private businesses and individuals consider that borrowing money is forbidden to finance growth and expansion, decreasing their expenses.

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hi,

henry is an economist and wants to understand the relationship between inflation and consumer spending habits. for his research, he needs the consumer price index for 2014 and the inflation rate. based on the prices of goods given, what will he find to be the cpi and inflation rate for 2014? assume that a consumer’s basket for three consecutive years consists of the following:

you dont privide answer choices.

answer - 15% of a inflatation rate is 15% less in cpi