10. In the market for loanable funds, there is a demand and supply of loanable funds represent as the following equations:

Demand: r = 20 - 0.003Q Supply: r = 0.001Q

Suppose that the interest rate is 3%, calculate the shortage or surplus of funds in the market. You only need to provide the number.

Instructions: If the percentage change is not a whole number you should leave two numbers after the decimal. E.g. If the answer is 10.2778 it can be entered as 10.28. If negative write -10.28.

Answer: