The following table shows the amount of money people would be willing to demand and supply for different rates of interest: Real rate of interest (%) Funds demanded ($) Funds supplied ($) 2 25000 10000 4 20000 13000 6 15000 15000 8 10000 17000 10 5000 20000 What is the equilibrium rate of real interest in this economy, and what will happen at a 10% interest rate? The equilibrium rate of real interest is 2%; and at a 10% interest, there will be excess demand for funds in the economy. The equilibrium rate of real interest is 2%; and at a 10% interest, there will be excess savings in the economy. The equilibrium rate of real interest is 6%; and at a 10% interest, there will be excess savings in the economy. The equilibrium rate of real interest is 6%; and at a 10% interest, there will be excess demand for funds in the economy. The equilibrium rate of real interest is 8%; and at a 10% interest, there will be excess demand for funds in the economy