What happens to the interest rate in the market for loanable Funds if there is a business downturn and general pessimism Supply about the future? a. What would happen to the supply of loanable funds? Show Interest rate the change on the accompanying diagram. Demand b. What would happen to the demand for loanable funds? Show the change on the accompanying diagram. c. What would happen to the equilibrium interest rate in Saving/borrowing ($) c. What would happen to the equilibrium interest rate in the market for loanable funds? O It is unclear how the equilibrium interest rate will change O The equilibrium interest rate will increase. O The equilibrium interest rate will decrease. O The equilibrium interest rate will stay the same