What Would an Increase in the Budget Deficit Most Likely

Multiple Choice

What would an increase in the budget deficit most likely cause?

A) a shortage of loanable funds at the original interest rate, which would lead to falling interest rates
B) a surplus of loanable funds at the original interest rate, which would lead to rising interest rates
C) a shortage of loanable funds at the original interest rate, which would lead to rising interest rates
D) a surplus of loanable funds at the original interest rate, which would lead to falling interest rates