-The Table Above Shows the Supply of Loanable Funds and
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$$\begin{array} { c c c } \begin{array} { c } \text { Real interest rate } \\\text { (percent per year) }\end{array} & \begin{array} { c } \text { Demand for loanable funds Supply of loanable funds } \\\text { (billions of } 2005 \text { dollars) }\end{array} & \text { (billions of 2005 dollars) } \\\hline 10 & 7 & 15 \\8 & 9 & 13 \\6 & 11 & 11 \\4 & 14 & 9 \\2 & 17 & 7 \\\hline\end{array}$$
-The table above shows the supply of loanable funds and the demand for loanable funds schedules.
a. What is the equilibrium real interest rate and the equilibrium quantity of loanable funds?
b. If the real interest rate is 4 percent, is there a shortage or surplus?
What will happen in the market?

Correct Answer:

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a. The equilibrium real interest rate is...

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