Question: The interest rate effect suggests (A) a decrease in the money supply will increase interest rates (B) an increase in the price level will increase

The interest rate effect suggests

(A) a decrease in the money supply will increase interest rates

(B) an increase in the price level will increase the demand for money

(C) an increase in the price level will lead consumers and businesses to borrow more money, which increases the interest rate

(D) a decrease in the price level will lead consumers and businesses to borrow more money, which increases the interest rate

(E) an increase in the price level will lead consumers and businesses to borrow less money, which increases the interest rate

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