The figure depicts a supply-of-loanable-funds curve and two demand-for-loanable-funds curves.INTEREST RATELOANABLE FUNDSSupplyD₂D₁Which of the following events would shift the demand curve from D₂ to D₁? Oa.A change in the tax laws encourages people to consume less and save more.b.Firms become pessimistic about the future and, as a result, they plan to decreasetheir purchases of new equipment and construction of new factories.The government instituted an investment tax credit for firmsOd.The government goes from running a budget deficit to running a budget surplus.

Loanable funds are those available for borrowing or lending in markets or banks. These funds are…

The figure depicts a supply-of-loanable-funds curve and two demand-for-loanable- funds curves. INTEREST RATE LOANABLE FUNDS Supply D₂ D₁ Which of the following events would shift the demand curve from D₂ to D₁?

The figure depicts a supply-of-loanable-funds curve and two demand-for-loanable- funds curves. INTEREST RATE LOANABLE FUNDS Supply D₂ D₁ Which of the following events would shift the demand curve from D₂ to D₁?

ENGR.ECONOMIC ANALYSIS

14th Edition

ISBN:9780190931919

Author:NEWNAN

Publisher:NEWNAN

Chapter1: Making Economics Decisions

Section: Chapter Questions

Problem 1QTC

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Question

The figure depicts a supply-of-loanable-funds curve and two demand-for-loanable-
funds curves.
INTEREST RATE
LOANABLE FUNDS
Supply
D₂
D₁
Which of the following events would shift the demand curve from D₂ to D₁?

Oa.
A change in the tax laws encourages people to consume less and save more.
b.
Firms become pessimistic about the future and, as a result, they plan to decrease
their purchases of new equipment and construction of new factories.
The government instituted an investment tax credit for firms
Od.
The government goes from running a budget deficit to running a budget surplus.

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