Refer to the information provided in Figure 12.5 below to answer the questions that follow.
Figure 12.5
-Refer to Figure 12.5.An increase in the price level shifts the ________ to the ________.
A)Fed rule; right
B)IS curve; right
C)IS curve; left
D)Fed rule; left

Question

Refer to the information provided in Figure 12.5 below to answer the questions that follow.
  Figure 12.5
-Refer to Figure 12.5.An increase in the price level shifts the ________ to the ________.
A)Fed rule; right 
B)IS curve; right 
C)IS curve; left 
D)Fed rule; left

Quizplus · Accepted Answer

An increase in the price level typically leads to higher interest rates, which would cause the Fed rule curve to shift to the left as the central bank adjusts its policy to maintain economic stability.

Refer to the Information Provided in Figure 12