Figure 13-4 $D _ { 1 }$ To $D _ { 2 }$

question 452

Multiple Choice

Figure 13-4. On the horizontal axis of the graph, L represents the quantity of loanable funds in billions of dollars.
-Refer to Figure 13-4. Which of the following events could explain a shift of the demand-for-loanable-funds curve from $D _ { 1 }$ to $D _ { 2 }$ ?

• A)The tax code is reformed to encourage greater saving.
• B)The tax code is reformed to encourage greater investment.
• C)The government starts running a budget deficit.
• D)The government starts running a budget surplus.

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