Figure 1. On the horizontal axis of the graph, L represents the quantity of loanable funds inbillions of dollars.896696$50 $62SupplyLRefer to Figure 1. Which of the following events could explain a shift of the demand-for-loanable-funds curve from D₁ to D₂?The tax code is reformed to encourage greater saving.The tax code is reformed to encourage greater investment.The government starts running a budget deficit.The government starts running a budget surplus.

Demand for loanable funds implies the firm's and individual's borrowing for the investment purposes.…

Figure 1. On the horizontal axis of the graph, L represents the quantity of loanable funds in billions of dollars. 896 6% $50 $62 Supply DI Refer to Figure 1. Which of the following events could explain a shift of the demand-for-loanable funds curve from D₁ to D₂?

Figure 1. On the horizontal axis of the graph, L represents the quantity of loanable funds in billions of dollars. 896 6% $50 $62 Supply DI Refer to Figure 1. Which of the following events could explain a shift of the demand-for-loanable funds curve from D₁ to D₂?

ENGR.ECONOMIC ANALYSIS

14th Edition

ISBN:9780190931919

Author:NEWNAN

Publisher:NEWNAN

Chapter1: Making Economics Decisions

Section: Chapter Questions

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Question

Figure 1. On the horizontal axis of the graph, L represents the quantity of loanable funds in
billions of dollars.
896
696
$50 $62
Supply
L
Refer to Figure 1. Which of the following events could explain a shift of the demand-for-loanable-
funds curve from D₁ to D₂?
The tax code is reformed to encourage greater saving.
The tax code is reformed to encourage greater investment.
The government starts running a budget deficit.
The government starts running a budget surplus.

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I just need part A. Don't give rubbish answer like before. Please provide legit answer.
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