An Increase in the Budget Deficit Would Cause a

Multiple Choice

An increase in the budget deficit would cause a

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