Question 4 (2 points) Which of the following is a statement that you DISAGREE with? Explain why. 1. When the government budget deficit decreases, it increases the demand for loanable funds and increases interest rates. 2. The crowding out effect is the tendency for a government budget deficit to increase interest rates and decrease investment. 3. When the government has a budget surplus, it increases the supply of loanable funds, decreases interest rates and increases investment