When the government borrows money, some economists claim it leads to ——-.

When the government borrows money, some economists claim it leads to crowding out.

Step-by-step explanation

As borrowing increases, the government must pay more interest rate fees to those holding bonds. This will contribute to a higher proportion of tax revenue going to debt interest payments. A situation in which higher interest rates contribute to a decrease in private investment spending in such a way as to minimize the initial rise in overall investment spending is called crowding out.