Classify Each of the Following in Terms of Their Effect

Multiple Choice

Classify each of the following in terms of their effect on interest rates (increase or decrease) :
I. Perceived risk of financial securities increases
II. Near term spending needs decrease
III. Future profitability of real investments increases

A) I increases, II increases, III increases
B) I increases, II decreases, III decreases
C) I decreases, II increases, III increases
D) I decreases, II decreases, III decreases
E) none of the above