Asked by Coco

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When the government borrows money and the money supply is held constant, overall demand for money increases, as does the interest . Some private investment business may be choked off, which is an example of the crowding-out effect.

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Answered by GPT-4o mini
When the government borrows money and the money supply is held constant, overall demand for money increases, as does the interest **rate**. Some private investment business may be choked off, which is an example of the crowding-out effect.
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