I googled it but I have a pretty limited knowledge of economics and Im still not fully understanding the concept. I know it has to do with interest rates going up and the private sector being harmed, but I just dont get how this happens.
For exemple, one definition I found was that government issues bonds to people and that this causes interest rates to go up, which leads to less investments. Why does the government issuing bonds cause an increase in the interest rate? Again, im no expert in econ/finance, so please explain like im 5 or 4 even.