The figure depicts a demand-for-loanable-funds curve and two supply-of-loanable-funds curves. S₂ Demand Refer to Figure 26-1. Which of the following events would shift the supply curve from S₁ to S2? O 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. O 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 $2.
The figure depicts a demand-for-loanable-funds curve and two supply-of-loanable-funds curves. S₂ Demand Refer to Figure 26-1. Which of the following events would shift the supply curve from S₁ to S2? O 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. O 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 $2.
Brief Principles of Macroeconomics (MindTap Course List)
8th Edition
ISBN:9781337091985
Author:N. Gregory Mankiw
Publisher:N. Gregory Mankiw
Chapter7: Production And Growth
Section: Chapter Questions
Problem 5CQQ
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