content area top Part 1 According to Ricardo-Barro, what is the effect of a government budget deficit in the loanable funds market? Question content area bottom Part 1 A. According to the Ricardo-Barro effect, a budget deficit raises the real interest rate. B. According to the Ricardo-Barro effect, a government budget deficit leads to the crowding-out effect. C. Most economists believe that the Ricardo-Barro effect holds in the loanable funds market. D. According to the Ricardo-Barro effect, rational taxpayers know that a budget deficit today means that future taxes will be higher and future disposable incomes will be smaller