One of the reasons that Aggregate Demand shows an inverse relationship between prices and the market value of output is the "wealth effect".

Which of the following is the best description of the wealth effect? Group of answer choices

a. There is a positive relationship between the overall price level and the wealth of consumers and investors.

b. There is an inverse relationship between the overall price level and the wealth of consumers and investors.

c. Higher interest rates increase the value of savings.

d. Higher prices may cause people to save less money, causing interest rates to rise, which may decrease the amount of investment and consumption in an economy.