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Refer to the following graph to answer the questions that follow.
-Assuming the figure represents the market for loanable funds,it would be true that:
Passive Activity
Economic endeavors in which a person is not actively involved on a regular, continuous, or substantial basis, often related to investment income.
Passive Losses
Financial losses occurring from income-generating activities in which the taxpayer does not materially participate, often subject to specific tax rules.
At-Risk Rules
Tax regulations that limit the amount of deductible losses from certain types of investments to the amount the taxpayer has at risk.
Passive Activity Losses
Financial losses in activities in which the taxpayer does not materially participate, with limitations on their use to offset other income.
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