Crowding Out of Private Borrowing as a Result of Increased

Crowding out of private borrowing as a result of increased federal government borrowing occurs because:

A) increased government borrowing drives up the interest rates on borrowed funds.
B) interest rates on investment opportunities fall as government takes over more high-yielding projects.
C) the government is interest-rate sensitive in its borrowing decisions, whereas households and businesses are not.
D) the government borrows to take advantage of investment opportunities that otherwise would have attracted private borrowers.