When the Government Finances Its Expenditures by Borrowing from Consumers

When the government finances its expenditures by borrowing from consumers and business firms

A) it creates a surplus.
B) it is more inflationary than if it borrows from the central bank.
C) it creates new money, making the deficit greater than it would otherwise have been.
D) the national debt goes down.
E) interest rates rise, reducing private investment spending.