Which of the following will lower interest rates in the short run?
A)an increase in reserve requirements
B)open market sales by the Fed
C)a decrease in real GDP
D)an increase in the price level

Question

Which of the following will lower interest rates in the short run?
A)an increase in reserve requirements 
B)open market sales by the Fed 
C)a decrease in real GDP 
D)an increase in the price level

Quizplus · Accepted Answer

A decrease in real GDP can lead to lower interest rates as the demand for money decreases, prompting the central bank to lower rates to stimulate economic activity.

Which of the Following Will Lower Interest Rates in the Short