If there is no RicardoBarro effect, the government

A.

always has negative saving and therefore lowers the real interest rate.

B.

only affects the demand for loanable funds curve in the loanable funds market.

C.

has no effect because private saving changes to offset the effect that thegovernment's budget deficit or surplus might otherwise have.

D.

increases the supply of loanable funds if it has a budget surplus and shifts the supply of loanable funds curve.

E.

plays no direct role in the loanable funds market because itdoesn't affect either the demand for loanable funds or the supply of loanable funds.