The crowding-out effect recognizes that if the government sells bonds to finance spending, it can cause interest rates to investment. rise, thereby stimulating fall, thereby stimulating rise, thereby reducing fall, thereby reducing

rise, thereby reducing

Explanation:

The crowding out effect states that increased government borrowing can lead to a fall in private investment. Increased government borrowing leads to a rise in real interest rate and this discourages private investment.

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d,

the answer is b for dog