The Diagram Below Shows the Budget Deficit Function for a Government

The diagram below shows the budget deficit function for a government in a hypothetical economy. FIGURE 31-1
-Refer to Figure 31-1.For the given budget deficit function in the diagram,the government will have a budget surplus if 1) real GDP increases beyond $X million
2) the interest rate on government debt decreases
3) government expenditure decreases

A) 1 only
B) 2 only
C) 3 only
D) 1 or 2 or 3
E) 2 or 3 only