What is the effect of a government budget surplus in the loanable funds market? Question content area bottom Part 1 A government budget surplus occurs, which _______ loanable funds. A. decreases the demand for B. increases the demand for C. increases the supply of D. decreases the supply of Part 2 The real interest rate ______, private saving ______, A. falls; decreases, and investment increases B. rises; decreases, and investment increases C. falls; increases, and investment decreases D. rises; increases, and investment decreases