Figure 26-1

question 130

Multiple Choice

Figure 26-1.The figure depicts a demand-for-loanable-funds curve and two supply-of-loanable-funds curves.
-Refer to Figure 26-1.Which of the following events would shift the supply curve from S1 to S2?

• A)In response to tax reform,firms are encouraged to invest more than they previously invested.
• B)In response to tax reform,households are encouraged to save more than they previously saved.
• C)Government goes from running a balanced budget to running a budget deficit.
• D)Any of the above events would shift the supply curve from S1 to S2.