What happenlo 2.12 Use the following graph to answer the questions, Real interest rate lononit C . .. . ... .. .. . ............. 12 .. ...... B . . ... . ......... . . . ......... D2 D1 0 L2 L3 Loanable funds (dollars per year) a. With the shift in the demand curve for loanable funds, what happens to the equilibrium real interest rate and the equilibrium quantity of loanable funds? b. How can the equilibrium quantity of loanable funds increase when the real interest rate increases? Doesn't the quantity of loanable funds demanded decrease when the interest rate increases? C. How much would the quantity of loanable funds demanded have increased if the interest rate had re- mained at i]? d. How much does the quantity of loanable funds sup- plied increase with the increase in the interest rate from i to iz