The Supply of Loanable Funds Would Shift to the Right

question 68

Multiple Choice

The supply of loanable funds would shift to the right if either

• A)tax reforms encouraged greater saving or the budget deficit became smaller.
• B)tax reforms encouraged greater saving or investment tax credits were increased.
• C)the budget deficit became larger or investment tax credits were increased.
• D)the budget deficit became larger or tax reforms discouraged saving.

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Definitions:

Bailor

The person who temporarily transfers possession but not ownership of a property or good to another (the bailee) under a bailment agreement.

Bailee

A person or entity to whom personal property is delivered for a specified purpose without transfer of ownership.

Transfer Of Possession

The act of moving control or ownership of an asset from one party to another.

Bailee

A Bailee is a person or entity that has temporary possession of someone else's property under a bailment agreement.