What Does the Real-Balances Effect Refer To

Multiple Choice

What does the real-balances effect refer to?

A) The effect that a change in savings has on the real rate of interest.
B) The level of income where it is exactly equal to the level of consumption.
C) The effect that a change in interest rates has on the real value of savings.
D) The effect that a change in the price level has on the real value of wealth.
E) The effect of a change in consumption on the real value of wealth.