Classify Each of the Following in Terms of Their Effect

Multiple Choice

Classify each of the following in terms of their effect on interest rates (increase or decrease) :
I. Perceived risk of financial securities increases.
II. Near term spending needs decrease.
III. Future profitability of real investments increases.

A) I increases,II increases,III increases
B) I increases,II decreases,III decreases
C) I decreases,II increases,III increases
D) I decreases,II decreases,III decreases
E) None of the options