If the supply of and demand for loanable funds both shift right,which of the following necessarily happens?

Question

Quizplus · Accepted Answer

When both supply and demand for loanable funds shift right, the equilibrium quantity of loanable funds rises because both lenders and borrowers are willing to supply and demand more funds, respectively. However, the equilibrium interest rate cannot be determined solely by the direction of the shifts, as it depends on the magnitude of the shifts. If the supply shift is larger than the demand shift, the equilibrium interest rate will fall, while if the demand shift is larger than the supply shift, the equilibrium interest rate will rise.

If the Supply of and Demand for Loanable Funds Both