If the Bank of Canada Increases the Real Interest Rate

Multiple Choice

If the Bank of Canada increases the real interest rate as a response to a decrease in the inflation rate,the ________,which results in a ________.

A) MP curve shifts up; movement down the AD curve
B) MP curve shifts up; movement up the AD curve
C) IS curve shifts up; movement down the AD curve
D) IS curve shifts up; movement up the AD curve