Figure 8-1

Figure 8-1. The figure depicts a demand-for-loanable-funds curve and two supply-of-loanable-funds curves.

-Refer to Figure 8-1. 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.