Which one of the following statements is the most accurate?

A.A decrease in the money supply lowers the interest rate, while an increase in the money supply raises the interest rate, given the price level and output.

B.An increase in the money supply lowers the interest rate, while a fall in the money supply raises the interest rate, given the price level.

C.An increase in the money supply lowers the interest rate, while a fall in the money supply raises the interest rate, given the output level.

D.An increase in the money supply lowers the interest rate, while a fall in the money supply raises the interest rate, given the price level and level.

E.None of the above.

Answer: D

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