Figure 13-2. On the horizontal axis of the graph, L represents the quantity of loanable funds in billions of dollars. Supply 5% D2 D1 $50 $62 L 18.Refer to Figure 13-2. Which of the following events could explain a shift of the demand-for- loanable-funds curve from D, to Do? 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. 19.Refer to Figure 13-2. Regard the position of the Supply curve as fixed, as on the graph. If the real interest rate is 8 percent, the inflation rate is 3 percent, and the market for loanable funds is in equilibrium, then the position of the demand-for-loanable-funds curve must be a. P1 b. D2. c. between D, and D2. d. to the right of D2