Final answer:
A tax imposed on sellers of a good will decrease the supply of the good. In financial markets, an increase in the quantity of loans occurs with a rise in demand for loans or a rise in the supply of loanable funds. The correct option is B.
Step-by-step explanation:
The question is exploring the effects of taxation on market outcomes. A tax imposed on the sellers of a good will decrease the supply of the good because it raises the cost of production and thus decreases the willingness or ability of sellers to supply the same quantity at the previous price.
It will not increase the demand or the quantity supplied. Generally, such a tax decreases the equilibrium quantity supplied unless the supply is perfectly inelastic. It also typically results in a decrease in the quantity demanded as the market price for consumers increases to account for the tax.
Conversely, in the financial market, an increase in the number of loans made and received can be attributed to a rise in demand for loans or a rise in the supply of loanable funds. If either demand rises (more borrowers want loans at the current interest rate) or supply rises (more lenders are willing to offer loans at the current interest rate), it leads to an increase in the quantity of loans. However, a fall in either demand or supply would decrease the total number of loans made and received.