Suppose That an Increase in the Price Level Reduces the Value

Multiple Choice

Suppose that an increase in the price level reduces the value of real wealth,which then causes a reduction in consumption but no change in saving.In this case,there is

A) both an interest rate effect and a wealth effect.
B) no wealth effect.
C) an interest rate effect but no wealth effect.
D) a wealth effect but no interest rate effect.
E) no wealth effect and no interest rate effect.