The Ricardo-Barro Effect Argues That the Crowding-Out Effect

The Ricardo-Barro effect argues that the crowding-out effect

A) is stronger when the government runs a budget surplus than when it runs a budget deficit.
B) is the result of a government budget surplus and higher interest rates.
C) is the result of the government budget deficit and higher interest rates.
D) will occur, because the private saving supply will change to offset any change in the government budget deficit.
E) will not occur, because the private saving supply will change to offset any change in the government budget deficit.