Other things equal, rising interest rates lead to a _____ in investment spending and a _____ in _____ spending.

A.fall; fall; consumer

B.rise; rise; consumer

C.fall; rise; consumer

D.fall; rise; investment

If the interest rate is above equilibrium, there will be an excesss___money and the interest rate will____

A. demand for; rise

B. supply of; fall

C. demand for; fall

D. supply of; rise

Interest rate, r Supply of money Demand for money Quantity of money