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. increases the supply of B. increases the demand for C. decreases the supply of D. decreases the demand for Part 2 The real interest rate ______, private saving ______, A. rises; decreases, and investment increases B. rises; increases, and investment decreases C. falls; increases, and investment decreases D. falls; decreases, and investment increases