An increase in the price level: 1. increases the purchasing power of money, leading to lower interest rates and increases investment. 2. increases the purchasing power of money, leading to higher interest rates and decreases investment. 3. decreases the purchasing power of money, leading to lower interest rates and increases investment. 4. decreases the purchasing power of money, leading to higher interest rates and decreases investment. When you withdraw $1, 000 from your bank account: 1. the bank's financial assets fall by $1, 000 and your financial liabilities rise by $1, 000. 2. the banks financial liabilities fall by $1, 000 and your financial assets rise by $1, 000. 3. both your and the bank's financial assets rise by $1, 000. 4. the bank's financial liabilities and assets fall by $1, 000 and you have exchanged one financial asset for another