In the Market for Loanable Funds, the Government Announces New

In the market for loanable funds, the government announces new tax breaks for saving for retirement while there is an increase in demand for products, which raises the return on investment in capital. What should be expected in the market for loanable funds as a result of these two events?

A) The interest rate will rise, but there is uncertainty about any change in the amount of borrowed funds.
B) The interest rate will fall, but there is uncertainty about any change in the amount of borrowed funds.
C) The amount of funds borrowed will rise, but there is uncertainty about the direction of any change in interest rates.
D) The amount of borrowed funds will fall, but there is uncertainty about the direction of any change in interest rates.