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

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Definitions:

Final Product

A good or service that has completed the production process and is available for sale to the end consumer.

Technology

The application of scientific knowledge for practical purposes, especially in industry.

Marginal Revenue Product

The additional revenue generated from employing one more unit of a factor of production, such as labor or capital.

Employment

Refers to the condition of having a paid job or being engaged in an activity that generates income.