An increase in the price level:
A. decreases the purchasing power of money, leading to higher interest rates, which decreases investment.
B. increases the purchasing power of money, leading to lower interest rates, which increases investment.
C. decreases the purchasing power of money, leading to lower interest rates, which increases investment.
D. increases the purchasing power of money, leading to higher interest rates, which decreases investment.
Answer: A
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What will be an ideal response?
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