Consider a scenario where both the demand and supply for loanable funds increase simultaneously. What is the likely effect on equilibrium interest rates and quantities?

• A. Equilibrium interest rates will rise, and quantities will decrease.
• B. Equilibrium interest rates will fall, and quantities will increase.
• C. Equilibrium interest rates may remain unchanged, but quantities will increase.
• D. Equilibrium interest rates will rise, and quantities will remain unchanged.

Answer: (C)