Continuing on the same train of thought, when the Fed decreasesdecreases the growth rate of the money supply, the price level effect drives the interest rate ▼

down/up

while the expected inflation rate pushes the interest rate ▼

down/up

The answers are:

down down

Explanation:

When the general prices level in an economy decreases (following a decrease in the money supply), the current inflation rate and the expected future inflation rate both decrease. If the expected inflation rate decreases, interest rates will also decrease.