China's Government Runs a Budget Budget Surplus

Multiple Choice

China's government runs a budget budget surplus. As a result,

A) if there is no Ricardo-Barro effect, the supply of loanable funds curve lies to the right of the private supply of loanable funds curve.
B) the quantity of loanable funds decreases.
C) interest rates should increase.
D) saving will exceed investment.
E) the Ricardo-Barro effect predicts that the real interest rate will increase.