2) Table 4.6 shows the amount of savings and borrowing in a market for loans to purchase homes at various interest rates. Table 4.6: Market for Home Loans Interest Rate Quantity of Loan Money Quantity of Loan Money Supplied (Lending) Demanded (Borrowing) 5% $130 million $170 million 6% $135 million $150 million 7% $140 million $140 million 8% $145 million $135 million 9% $150 million $125 million 10% $155 million $1 10 million a) What is the equilibrium interest rate and equilibrium quantity in the capital financial market? b) Now, imagine that because of a change in the perceptions of foreign investors, the supply curve shifts so that there will be $10 million less supplied at every interest rate. What is the new equilibrium interest rate and quantity? c) Has the equilibrium interest rate increased or decreased as a result of the change? Explain why the direction of the interest rate shift makes intuitive sense. Focus BE