Refer to the below table and information. If technology improved and the demand for loanable funds increases by $140 billion at each interest rate, the new equilibrium interest rate will be:

The schedule shows various interest rates, the associated quantity demanded of loanable funds, and the quantity supplied of loanable funds in billions of dollars at those interest rates.

A. 2 percent
B. 4 percent
C. 8 percent
D. 10 percent

ANSWER:

C. 8 percent