All of the following are possible private-sector adjustments to an increase in the government's budget deficit,except

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Increasing private savings (A) and decreasing investment (B) are possible private-sector adjustments to an increase in the government's budget deficit. However, decreasing expenditures on transfer programs (C) is not a likely option as increasing transfer programs is a way that the government tries to expand the economy in the low-income groups. Increasing the trade deficit by increasing imports and/or decreasing exports (D) is also possible, but it does not fall under private-sector adjustments – it is a result of a change in the overall trade balance.

All of the Following Are Possible Private-Sector Adjustments to an Increase