When real interest rates in the United States rise relative to real interest rates in Japan, what is the impact on the U.S. price level? Explain your answer using AD-SRAS analysis

Higher real interest rates in the United States attract investors to the United States. This increases the demand for the dollar, causing the dollar to appreciate and the yen to depreciate. An appreciated dollar lowers U.S. net exports, shifting the AD curve leftward, which would decrease the U.S. price level. At the same time the depreciated yen makes Japanese-made inputs cheaper for U.S. producers, so the SRAS curve shifts rightward, which would also make the U.S. price level decrease. The combined result would thus be a decrease in the U.S. price level.