If We Were to Change the Interpretation of the Term

Multiple Choice

If we were to change the interpretation of the term "loanable funds" in such a way that government budget deficits would affect the demand for loanable funds, rather than the supply of loanable funds, then

A) crowding out would not be a consequence of an increase in the budget deficit.
B) higher interest rates would not be a consequence of an increase in the budget deficit.
C) an increase in the budget deficit would cause the demand for loanable funds to decrease.
D) we would be making only a semantic change in how we analyze the effects of government budget deficits.