Why Does an Increase in the Price Level Result in a Decrease

Multiple Choice

Why does an increase in the price level result in a decrease in the aggregate quantity of goods and services demanded?

A) because as wealth rises, interest rates rise, and the dollar appreciates
B) because as wealth rises, interest rates fall, and the dollar depreciates
C) because as wealth falls, interest rates rise, and the dollar appreciates
D) because as wealth falls, interest rates fall, and the dollar depreciates