Let's break down each part of the question systematically:
### a) Equilibrium Price of Bank Loans
In a typical demand and supply diagram for bank loans, we have:
- **Demand Curve (D)**: Slopes downward. As the interest rate decreases, more borrowers are willing to take out loans, increasing the quantity demanded.
- **Supply Curve (S)**: Slopes upward. As the interest rate increases, banks are incentivized to lend more, thus increasing the


