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The following table lists some economic agents and their intentions. At present the interest rate is 5 percent.

Who	Intent	Amount Needed
Mike	Save for child's college	$50,000
Sophie	Buy a car	$10,000
Pie's Pizza	Expand restaurant	$100,000
Sara	Save for retirement	$100,000

Refer to the table above. Assume that Peter, who needs a loan of $10,000 to repair his business, enters the loanable funds market. Inflation is 3 percent. If the demand for credit is perfectly inelastic, which answer below could describe the new equilibrium?

▸ Q* = $160,000, r = 3 percent

▸ Q* = $120,000, r = 3 percent

▸ Q* = $110,000, r = 4.5 percent

▸ Q* = $140,000, r = 5 percent

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