he interest-rate effect suggests that:   A. an increase in the price level will increase interest rates, and decrease investment and aggregate demand.   B. an increase in the price level will reduce interest rates, and decrease investment and aggregate demand.   C. a decrease in the supply of money will increase interest rates and reduce interest-sensitive consumption and investment spending.   D. an increase in the price level will reduce interest rates, and increase investment and aggregate

Macroeconomics
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ISBN:9781337617390
Author:Roger A. Arnold
Publisher:Roger A. Arnold
Chapter14: Money And The Economy
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he interest-rate effect suggests that:
  A.
an increase in the price level will increase interest rates, and decrease investment and aggregate demand.
  B.
an increase in the price level will reduce interest rates, and decrease investment and aggregate demand.
  C.
a decrease in the supply of money will increase interest rates and reduce interest-sensitive consumption and investment spending.
  D.
an increase in the price level will reduce interest rates, and increase investment and aggregate demand.
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