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. Covenants on borrowing become more restrictive.
II. The Federal Reserve increases the money supply.
III. Total household wealth 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