oduring the Clinton administration, collaboration with Congress enabled the passage of an aggressive deficit$-$cutting ${?}_0^0$ plan. Consequently, the government achieved a balanced budget by the end of the $1990$s$.$

Adjust the supply and demand curves to illustrate the oexpected impact of this deficit reduction on the loanable funds market.

As a result, private investment should have

decreased as the cost of borrowing decreased.

increased because the cost of borrowing decreased.

decreased as the cost of borrowing increased.

increased as the cost of borrowing increased.