What effect would the development of federal government budget surpluses have on the demand and supply of loanable funds and interest rates, ceteris paribus?
A) The supply of loanable funds should decrease, putting downward pressure on interest rates.
B) The supply of loanable funds should decrease, putting upward pressure on interest rates.
C) The demand for loanable funds should decrease, putting downward pressure on interest rates.
D) The demand for loanable funds should increase, putting upward pressure on interest rates.
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