According to the Interest Rate Effect, an Increase in the Price

Multiple Choice

According to the interest rate effect, an increase in the price level causes the Fed to _____ the interest rate, which _____ investment spending and _____ aggregate output.

A) increase; decreases; decreases.
B) increase; decreases; decreases
C) decrease; increases; decreases.
D) decrease; increases; decreases
E) increase; increases; decreases.
F) increase; increases; decreases
G) decrease; decreases; increases.
H) decrease; decreases; increases