Figure 8-4

question 362

Multiple Choice

Figure 8-4. On the horizontal axis of the graph, L represents the quantity of loanable funds in billions of dollars.

-Refer to Figure 8-4. Which of the following events could explain a shift of the demand-for-loanable-funds curve from to ?

• 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.

---

Definitions:

Land

The solid part of the earth's surface, considered as property and subject to ownership and use rights.

Future Interest

A person’s present right to property ownership and possession in the future.

Conditional Estate

A form of property ownership that is subject to certain conditions or the occurrence of a specific event.

Mislaid Property

Property that is intentionally placed somewhere but then forgotten by the owner, distinct from lost or abandoned property.