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Which of the Following Pairs of Events Will Definitely Lead

Question 136

Multiple Choice

Which of the following pairs of events will definitely lead to an increase in the equilibrium interest rate?


A) the sale of government bonds by the Federal Reserve and an increase in the price level
B) the purchase of government bonds by the Federal Reserve and a decrease in the price level
C) an increase in the required reserve ratio and a decrease in the level of real GDP
D) a decrease in the discount rate and an increase in the level of real GDP

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