The Wealth or Real Balances Effect Indicates That

The wealth or real balances effect indicates that

A) a higher interest rate will increase the real value of many financial assets and therefore cause an increase is spending
B) a higher interest rate will decrease the real value of many financial assets and therefore cause a decline in spending
C) an increase in the price level will increase the demand for money,increase interest rates,and reduce consumption and increase spending
D) a lower interest rate will increase the real value of many financial assets and therefore cause an increase in spending