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

question 75

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

---

Definitions:

Salary Allowances

Additional benefits or compensations provided to employees on top of their regular salary, which may include housing, transport, or medical allowances.

Liquidation

The process of closing a business and distributing its assets to claimants, often done when a company is insolvent.

Going Out Of Business

The process of closing a company permanently, often involving selling off assets and paying off creditors.

Revaluation Of Land

The process of adjusting the book value of land to reflect its current market value, often leading to an increase in assets on the balance sheet.