Which of the following pairs of events will definitely lead to an increase in the equilibrium interest rate?
A) a decrease in the required reserve ratio and an increase in the level of real GDP
B) an increase in the discount rate and an increase in the price level
C) the purchase of government bonds by the Federal Reserve and a decrease in the level of real GDP
D) the sale of government bonds by the Federal Reserve and a decrease in the price level
Correct Answer:
Verified
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A) positively
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Q49: Which choice is true?
A) A higher interest
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