Suppose the Government Has a Budget Deficit of $2 Billion

Suppose the government has a budget deficit of $2 billion. If the Ricardo-Barro effect is correct, then how much crowding out of investment occurs?

A) Some crowding out occurs, but less than $2 billion.
B) No crowding out occurs because investment increases by $2 billion.
C) More than $2 billion.
D) Exactly equal to $2 billion dollars.
E) No crowding out occurs and investment does not change.