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 to
?
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.

Question

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  to 
?
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.

Quizplus · Accepted Answer

The Answer of 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  to 
?
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.