Which of the following would necessarily create a surplus at the original equilibrium interest rate in the loanable funds market?
A) An increase in the supply of or a decrease in the demand for loanable funds
B) An increase in the supply of or an increase in the demand for loanable funds
C) A decrease in the supply of or a decrease in the demand for loanable funds
D) A decrease in the supply of or an increase in the demand for loanable funds
Correct Answer:
Verified
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The figure depicts a supply-of-loanable-funds curve
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The figure depicts a demand-for-loanable-funds curve
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