What Effect Will an Increase in the Interest Rate Have

Multiple Choice

What effect will an increase in the interest rate have on investment?  

A)  An increase in the interest rate will lead to an increase in investment, because holding stocks and bonds will be more profitable. 
B)  An increase in the interest rate will lead to an increase in investment, because people will be less willing to hold money. 
C)  An increase in the interest rate will lead to a decrease investment only if firms have to borrow money to make investments. 
D)  An increase in the interest rate will lead to a decrease investment regardless of whether firms have to borrow money to make an investment.