Figure10-4Equilibrium in the Domestic Loanable Funds Market At the equilibrium interest rate, the quantity of loanable funds supplied equals the quantity of loanable funds demanded. Here, the equilibrium interest rate is 8%, with $30 billion of funds lent and borrowed. Lenders who demand an interest rate of 8% or lower have their offers of loans accepted; those who demand a higher interest rate do not. Projects that are profitable at an interest rate of 8% or higher are funded; those that are profitable only when the interest rate falls below 8% are not.