The type of mountain that forms when rock layers are squeezed together and pushed upward is called a folded mountain.

Here's why:

* Folding: The squeezing force (compression) causes the rock layers to bend and fold, creating the characteristic shape of a folded mountain.

* Upward Push: The compression also pushes the rock layers upward, forming the mountainous terrain.

Some famous examples of folded mountains include the Himalayas, the Alps, and the Appalachian Mountains.