The Following Figure Shows Credit Demand and Credit Supply Curves

The following figure shows credit demand and credit supply curves.

-Refer to the figure above. Assume that the loanable funds market initially is in equilibrium at point A. The media report that a new housing bubble may warrant precaution. Holding all else constant, how might the equilibrium change?

A) Demand will increase, so people can pay off their houses faster. The new equilibrium will be at point C.
B) Supply will increase, because potential buyers will choose to save instead of investing. The new equilibrium will be at point C.
C) Demand will decrease, because potential buyers may fear stricter requirements to qualify for loans and so choose to not buy a house yet. The new equilibrium will be at point B.
D) Supply will decrease, because banks are less likely to approve new loans. The new equilibrium will be at point B.