Question 28Figure 26-2The figure depicts a supply-of-loanable-funds curve and two demand-for-loanable-funds curves.INTEREST RATELOANABLE FUNDSSupplyD₂Refer to Figure 26-2. Which of the following events would shift the demand curve from D₁ to D2?a. The government goes from running a budget deficit to running a budget surplus.b. Firms become optimistic about the future and, as a result, they plan to increase their purchases of new equipment and construction of new factories.C. A change in the tax laws encourages people to consume less and save more.d. A change in the tax laws encourages people to consume more and save less.

Rightward shift in the demand curve from D1 to D2 shows increase in the demand for loanable funds.

Question 28 Figure 26-2 The figure depicts a supply-of-loanable-funds curve and two demand-for-loanable-funds curves. INTEREST RATE LOANABLE FUNDS Supply D₂ D₁ Refer to Figure 26-2. Which of the following events would shift the demand curve from D₁ to D2? O a. The government goes from running a budget deficit to running a budget surplus. O b. Firms become optimistic about the future and, as a result, they plan to increase their purchases of new equipment and construction of new factories. c. A change in the tax laws encourages people to consume less and save more. O d. A change in the tax laws encourages people to consume more and save less.

Question 28 Figure 26-2 The figure depicts a supply-of-loanable-funds curve and two demand-for-loanable-funds curves. INTEREST RATE LOANABLE FUNDS Supply D₂ D₁ Refer to Figure 26-2. Which of the following events would shift the demand curve from D₁ to D2? O a. The government goes from running a budget deficit to running a budget surplus. O b. Firms become optimistic about the future and, as a result, they plan to increase their purchases of new equipment and construction of new factories. c. A change in the tax laws encourages people to consume less and save more. O d. A change in the tax laws encourages people to consume more and save less.

Exploring Economics

8th Edition

ISBN:9781544336329

Author:Robert L. Sexton

Publisher:Robert L. Sexton

Chapter21: Financial Markets, Saving, And Investment

Section: Chapter Questions

Problem 6P

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