Again, consider the AD curve. Which of the following is incorrect about the interest rate effect?

Group of answer choices

A. An increase in prices tends to increase government spending, since an increase in demand for money increases interest rates, making the AD curve more vertical

B. An increase in prices tends to decrease investment spending, since an increase in demand for money increases interest rates, contributing to the downward slope of the AD

C. An increase in prices tends to decrease consumption spending, since an increase in demand for money increases interest rates, contributing to the downward slope of the AD

D. An increase in prices means that people will need more credit to buy goods and services, which pushes the interest rates up