An Increase in the Price Level

Multiple Choice

An increase in the price level:

A) increases the purchasing power of money, leading to lower interest rates, which increases investment.
B) increases the purchasing power of money, leading to higher interest rates, which decreases investment.
C) decreases the purchasing power of money, leading to lower interest rates, which increases investment.
D) decreases the purchasing power of money, leading to higher interest rates, which decreases investment.