Which of the Following Properly Describes the Interest-Rate Effect That

Multiple Choice

Which of the following properly describes the interest-rate effect that helps explain the slope of the aggregate-demand curve?

A) As the money supply increases, the interest rate falls, so spending rises.
B) As the money supply increases, the interest rate rises, so spending falls.
C) As the price level increases, the interest rate falls, so spending rises.
D) As the price level increases, the interest rate rises, so spending falls.