Answer:
Answer is option a, i.e. In a closed economy, the equilibrium in the market for loanable funds occurs where saving = investment.
Explanation:
Only option a is correct in the above given question. In relation to other options we have the following explanation:
Option b → Savings are the source for the supply of loanable funds.
Option c → If there is a surplus in the market for loanable funds, the interest rate falls and do not rise.
Therefore, the only correct option is option a.
