When the Government Goes from Running a Balanced Budget to Running

Multiple Choice

When the government goes from running a balanced budget to running a budget surplus,

A) national saving decreases,the interest rate rises,and the economy's long-run growth rate is likely to decrease.
B) national saving increases,the interest rate falls,and the economy's long-run growth rate is likely to decrease.
C) national saving decreases,the interest rate rises,and the economy's long-run growth rate is likely to increase.
D) national saving increases,the interest rate falls,and the economy's long-run growth rate is likely to increase.