Which of the Following Is an Example of the Interest-Rate

Multiple Choice

Which of the following is an example of the interest-rate effect,assuming the U.S.price level decreases?

A) The purchasing power of money decreases and people buy more goods
B) U.S.goods are more expensive for foreigners to buy and exports decrease
C) U.S.production costs increase and producers charge higher prices
D) The demand for loans decreases so interest rates decline and loan-financed purchases increase