Which Statement Is FALSE

question 39

Multiple Choice

Which statement is FALSE?

• A) When there is an increase in the government budget deficit, the total amount of borrowing falls.
• B) When there is an increase in private savings, the interest rate decreases.
• C) When there is an increase in the government budget deficit, private investment is crowded out.
• D) When there is an increase in private savings, the total amount of borrowing increases.