Consider a Closed- Economy AD/AS Macro Model

Consider a closed- economy AD/AS macro model. A policy- induced increase in the government's budget deficit is most likely to crowd- out private investment if

A) interest rates rise sharply as a result of the deficit.
B) consumers reduce consumption as a result of the deficit.
C) interest rates decrease sharply as a result of the deficit.
D) there is a very large output gap.
E) rising income increases the volume of saving and interest rates rise very little.