What Effect Do Higher Interest Rates Have on Consumer Spending

Multiple Choice

What effect do higher interest rates have on consumer spending?

A) Consumer spending increases as people try to quickly buy goods before rates go even higher.
B) Consumer spending decreases immediately, but then rises sharply after consumers get used to the new higher interest rates.
C) Consumer spending is not impacted by changes in interest rates.
D) Consumer spending decreases.
E) It is not possible to tell from the information given.