wo Indicate whether each statement is true or false. Macmillan Learning a. An increase in government spending can crowd out b. An improvement in the budget balance increases the private investment. demand for financial capital. c. An increase in private consumption may crowd out d. Lower interest rates can lead to private investment private investment. being crowded out. e. A trade balance in surplus increases the supply of f. If private savings is equal to private investment, then financial capital. there is neither a budget surplus nor a budget deficit