What Is Likely to Happen If the Government Runs a Budget

Multiple Choice

What is likely to happen if the government runs a budget surplus?

A) Additional loanable funds are provided to the market, leading to higher interest rates.
B) Loanable funds are removed from the market, leading to higher interest rates.
C) Additional loanable funds are provided to the market, leading to lower interest rates.
D) Loanable funds are removed from the market, leading to lower interest rates.