Use the following to answer questions Figure: Loanable Funds Contraction -(Figure: Loanable Funds Contraction)Which of the following reasons could cause the supply curve for loanable funds to shift to the left from S_LF to S¹_LF in the figure? A) The economy is expected to go into a recession. B) An existing investment tax credit is abolished. C) The government ceases taxing interest earnings. D) Consumers become less patient.

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The Answer of Use the following to answer questions Figure: Loanable Funds Contraction -(Figure: Loanable Funds Contraction)Which of the following reasons could cause the supply curve for loanable funds to shift to the left from S_LF to S¹_LF in the figure? A) The economy is expected to go into a recession. B) An existing investment tax credit is abolished. C) The government ceases taxing interest earnings. D) Consumers become less patient.

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