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Which of the Following Would Necessarily Create a Surplus at the Original

Question 40

Multiple Choice

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:

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