Which one of the following best describes the 'Crowding Out Effect' in the context of fiscal policy?

The Crowding Out Effect is an economic theory which argues that increased public sector spending drives down or eliminates private sector spending. When the government borrows heavily from the financial markets to finance its deficit spending, it increases demand for loanable funds, pushing up interest rates. Higher interest rates make borrowing more expensive for private firms and consumers, which reduces private investment and consumption. This 'crowds out' private investment that would otherwise have occurred. Option (a) describes the opposite (crowding in). Option (c) is unrelated, and option (d) contradicts basic Keynesian economics.