Refer to the information provided in Figure 26.5 below to answer the question(s) that follow. Figure 26.5
-Refer to Figure 26.5. 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 26.5 below to answer the question(s) that follow.  Figure 26.5
-Refer to Figure 26.5. 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 a higher interest rate, which causes the Fed rule to shift to the left as the central bank adjusts its policy to maintain economic stability.

Refer to the Information Provided in Figure 26