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.
Correct Answer:
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