a) Suppose the total demand and supply of loanable funds by Malaysia's small and medium enterprises (SME) are as follows: Quantity demanded of Quantity supplied of loanable funds (RM Interest rate (%) loanable funds (RM Surplus (+) or shortage billions) billions) (-) 850 2 720 800 4 730 750 6 750 700 8 770 650 10 790 600 12 810 i. What will be the market or equilibrium interest rate? What is the equilibrium quantity of loanable funds? Complete the surplus-shortage column. ii. Why will 2% not be the equilibrium interest rate in this market? Why not 12%? ili. Now suppose that the government through the Ministry of Entrepreneur Development and Cooperatives (MEDAC) sets the interest rate of an SME loan at 6%. Explain the economic effects of this policy. b) What is a pure rate of interest? Give examples. c) Why is the supply of loanable funds curve upward sloping? d) How would the following situations affect the equilibrium interest rate in the loanable funds market