An Increase in the Budget Surplus Shifts the

Multiple Choice

An increase in the budget surplus shifts the

A) supply of loanable funds to the left and increases the real interest rate.
B) supply of loanable funds to the right and reduces the real interest rate.
C) demand for loanable funds to the right and increases the real interest rate.
D) demand for loanable funds to the left and reduces the real interest rate.