The following graph shows the market for bank reserves in a hypothetical economy. Suppose the price level decreases from 110 to 70.

Shift the appropriate curve on the following graph to show the impact of a decrease in the overall price level.

Note: Select and drag one or both of the curves to the desired position. Curves will snap into position, so if you try to move a curve and it snaps back to its original position, just drag it a little farther.

6 O 5 Supply Demand Supply INTEREST RATE (Percent) 2 Demand 1 0 0 10 20 30 40 50 60 QUANTITY OF BANK RESERVES (Billions of dollars)