What Does the Interest-Rate Effect Mean

Multiple Choice

What does the interest-rate effect mean?

A) That an increase in the money supply will increase the rate of interest and cause investment to fall.
B) That a decrease in prices will reduce the rate of interest which will cause investment to increase.
C) That an increase in the price level will decrease interest rates,and decrease consumption and investment spending.
D) That an increase in the price level will decrease the demand for money and spending.
E) That an increase in Real GDP will increase the price level.