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
my answer is C
