Which of the following pairs of events will definitely lead to a decrease in the equilibrium interest rate?
A) the purchase of government securities by the Federal Reserve and a increase in the level of nominal aggregate output
B) an increase in the discount rate and an increase in the price level
C) a decrease in the required reserve ratio and a decrease in the level of nominal aggregate output
D) the sale of government securities by the Federal Reserve and a decrease in the price level
Correct Answer:
Verified
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