Equilibrium in the Market for Loanable Funds Determines the Interest Rate and the Quantity of Loanable Funds At an interest rate greater than 8%, there is a surplus of savings and the interest rate is bid down. At an interest rate less than 8%, there is a shortage of savings and the interest rate is bid up. At an interest rate of 8%, the quantity of savings supplied ($250 billion) is exactly equal to the quantity of savings demanded.