Consider the Aggregate Demand (AD) curve, with the typical X and Y-axis (real GDP and price level, respectively). Which of the following is true about the wealth effect?

Group of answer choices

A. Since an increase in prices reduce people's (real) wealth, consumption spending will decrease and, therefore, contribute to the downward slope of the AD curve

B. Since an increase in prices reduce people's (real) wealth, consumption spending will increase and, therefore, contribute to the upward slope of the AD curve

C. Since an increase in prices doesn't affect people's (real) wealth, consumption spending will stay the same and, therefore, contribute to the perfectly vertical AD curve

D. Since an increase in prices increases people's (real) wealth, consumption spending will decrease and, therefore, contribute to the downward slope of the AD curve