In the short run, a rise in the price level brings a_{--------------------} in the real interest rate that_{--------------------} Investment, bringing_{--------------------} in the quantity of real GDP demanded. A)rise; decreases; a decrease B)fall; decreases ; a decrease C)rise; increases ; an increase D)rise; decreases; an increase E)fall; increases ; an increase

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In the short run, a rise in the price level leads to a rise in the real interest rate, which decreases investment, resulting in a decrease in the quantity of real GDP demanded.

In the Short Run, a Rise in the Price Level