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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The Answer of 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.