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InvestHub.com's
Finance Dictionary and Glossary of Investment Terms

Crowding out  

Definition 1.

Heavy federal borrowing that drives interest rates up and prevents businesses and consumers from borrowing when they would like to.
 

Definition 2.

A situation in which the government is borrowing heavily while businesses and individuals also want to borrow. The former can always pay the market interest rate, but the latter cannot, and is crowded out.
 
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