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Figure 26-4

Question 197

Multiple Choice

Figure 26-4.On the horizontal axis of the graph,L represents the quantity of loanable funds in billions of dollars. Figure 26-4.On the horizontal axis of the graph,L represents the quantity of loanable funds in billions of dollars. -Refer to Figure 26-4.Which of the following events could explain a shift of the demand-for-loanable-funds curve from D<sub>1</sub> to D<sub>2</sub> ? A) The tax code is reformed to encourage greater saving. B) The tax code is reformed to encourage greater investment. C) The government starts running a budget deficit. D) The government starts running a budget surplus.
-Refer to Figure 26-4.Which of the following events could explain a shift of the demand-for-loanable-funds curve from
D1 to D2 ?


A) The tax code is reformed to encourage greater saving.
B) The tax code is reformed to encourage greater investment.
C) The government starts running a budget deficit.
D) The government starts running a budget surplus.

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