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.

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