According to Keynes, when the price level rises, it causes the interest rate to do what? It causes the level of business spending to do what? It causes a decrease in the interest rate, as people adjust to higher prices and purchase less; business spending decreases as well. It causes an increase in the interest rate, due to greater consumer demand for money to spend; business spending goes up as well. It causes an increase in the interest rate, due to a greater consumer demand for money to spend; business spending decreases. It causes a decrease in the interest rate, as people adjust to higher prices and purchase less; business spending goes up