Holding All Other Things Constant, When the Price Level Rises

Multiple Choice

Holding all other things constant, when the price level rises, interest rates:

A) rise, firms want to borrow more for new plants and equipment, and households want to borrow less for homebuilding.
B) rise, firms want to borrow less for new plants and equipment, and households want to borrow less for homebuilding.
C) fall, firms want to borrow more for new plants and equipment, and households want to borrow more for homebuilding.
D) fall, firms want to borrow less for new plants and equipment, and households want to borrow more for homebuilding.
E) remain unaffected and firms borrow the same amount for new plants and equipment but households borrow less for homebuilding.