If a Country Went from a Government Budget Deficit to a Surplus

Multiple Choice

If a country went from a government budget deficit to a surplus, which of the following best predicts the consequences?

A) National savings would increase, shifting the supply of loanable funds right.
B) National savings would increase, shifting the supply of loanable funds left.
C) National savings would decrease, shifting the demand for loanable funds right.
D) National savings would decrease, shifting the demand for loanable funds left.