The Interest Rate Effect Suggests That

The interest rate effect suggests that

A) an increase in the price level will,reduce interest rates,and therefore reduce consumption and investment spending.
B) an increase in the price level will,increase interest rates,and therefore reduce consumption and investment spending.
C) nominal interest rates do not accurately measure the yield on loans unless adjusted by use of a price index.
D) a decrease in the real interest rate will stimulate consumption and investment spending and therefore inflate the price level.
E) changes in the price level are inversely related to changes in nominal interest rates.