Figure 26-4

question 197

Multiple Choice

Figure 26-4.On the horizontal axis of the graph,L represents the quantity of loanable funds in billions of dollars.
-Refer to Figure 26-4.Which of the following events could explain a shift of the demand-for-loanable-funds curve from
D₁ to D₂ ?

• 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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Definitions:

High Temperature

A condition of heat that is significantly above the average and affects physical, chemical, or biological processes in a specific context.

Computer Models

Simulations run on computer software that are designed to replicate the behaviors of physical, biological, or chemical systems.

Tsunami

Massive waves in the ocean with lengthy wavelengths resulting from large disturbances, including earthquakes, volcanic activities, or underwater slips.

Volcanic Material

The natural products ejected by a volcano, including lava, ash, volcanic rocks, and gases.