(Figure: Loanable Funds Market III) Use Figure: Loanable Funds Market III. If the government in a closed economy is running a budget balance of zero when it decides to increase defence spending by $200 billion and then finances the spending by selling bonds, the government will crowd out a maximum of _____ in private investment spending. Select one:

a. $50 billion

b. $10 billion

c. $200 billion

d. $100 billion

A B C D LRAS AS LRAS AS LBAS LRAS AS: ASI ASI ASI ADI ADI AMADI AD% AD: E F G H LR LR. AS, LR, LR. ASI LRAS LRAS ASI ASI ADDOF AS ASI AS: ADI AD: AD: ADI Q Q Figure (AD/AS) in the long run.