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Which of the following statements is correct? Question 38 options: A government budget deficit decreases the demand for loanable funds, increases the real interest rate,

Which of the following statements is correct? Question 38 options: A government budget deficit decreases the demand for loanable funds, increases the real interest rate, and crowds out investment. A government budget deficit increases the demand for loanable funds, increases the real interest rate, and crowd out investment. A government budget deficit decreases the demand for loanable funds, increases the real interest rate, and increases investment. A government budget deficit has no impact on the market for loanable funds as the Bank of Canada prints additional currency to cover the deficit. A government budget deficit increases the demand for loanable funds, decreases the real interest rate, and crowds out investment

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