Refer to the information provided in Figure 11.5 below to answer the questions that follow. Figure 11.5
-Refer to Figure 11.5. A decrease 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 11.5 below to answer the questions that follow.  Figure 11.5
-Refer to Figure 11.5. A decrease 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

A decrease in the price level typically leads to a decrease in interest rates, which can cause the Fed rule curve to shift to the right, indicating a more accommodative monetary policy stance.

Refer to the Information Provided in Figure 11