The table sets out the data for an economy when the government's budget is balanced. Real If the government's budget becomes a deficit of $2.0 trillion, what are the real interest rate and interest rate Loanable funds Loanable funds investment? percent demanded supplied per year) (trillions of 2009 dollars) Does crowding out occur? 4 7.0 7.0 6.5 7.5 6 6.0 8.0 5.5 8.5 If the government's budget becomes a deficit of $2.0 trillion, the real interest rate is percent a year and 8 5.0 9.0 the quantity of investment is $ trillion. 4.5 9.5 >>>Answer to 1 decimal place. 10 4.0 10.0 There crowding out in this situation because O A. is; the deficit increases the real interest rate, which decreases the quantity of loanable funds demanded O B. is no; investment equals the quantity of loanable funds demanded, which means that it is not being crowded out