Refer 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. SupplyD:D,LOANABLE FUNDSINTEREST RATE

Answered: Refer to Figure 26-2. Which of the…

ENGR.ECONOMIC ANALYSIS

14th Edition

ISBN:9780190931919

Author:NEWNAN

Publisher:NEWNAN

Chapter1: Making Economics Decisions

Section: Chapter Questions

Problem 1QTC

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Refer 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.

Supply
D:
D,
LOANABLE FUNDS
INTEREST RATE

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The curve that depicts that quantities of goods being demanded by consumers at various levels of price is known as the demand curve.

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