The price level and the market for bank reserves

The following graph shows the market for bank reserves in a hypothetical economy. Suppose the price level increases from 60 to 80.

Shift the appropriate curve on the following graph to show the impact of an increase 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.

O 5 Supply Demand Supply 3 INTEREST RATE (Percent) 2 Demand 0 10 20 30 40 50 60 QUANTITY OF BANK RESERVES (Billions of dollars)