Interest rate (%) Surt Sur 35. DU DS 01 02 03 Quantity of loanable funds Use this diagram to answer the two independent scenarios below: The demand for loanable funds curve DLF1 will shift to DLF2 when there is a(n): a. decrease in the government budget deficit. b. increase in the government budget deficit. c. increase in private savings. d. decrease in private savings. The supply of loanable funds curve SLF1 shifts to SLF2. This shift implies that: a. private savings has increased. b. national investment has decreased. c. private savings has decreased. d. national savings has decreased