Assume there is a simultaneous increase in investor confidence and a decrease in income. Which of the following correctly describes the changes that would occur in the market for loanable funds?
a. The quantity of savings and investment would increase, but any change in the interest rate would be uncertain.
b. The interest rate would decrease, but any change in the equilibrium quantity of savings and investment would be uncertain
c. The quantity of savings and investment would decrease, but any change in the interest rate would be uncertain
d. The interest rate would increase, but any change in the equilibrium quantity of savings and investment would be uncertain