Which of the Following Will Lead to a Decrease in the Equilibrium

question 238

Multiple Choice

Which of the following will lead to a decrease in the equilibrium interest rate in the economy?

• A)an increase in the price level
• B)a sale of government securities by the Fed
• C)a decrease in GDP
• D)an increase in the discount rate
• E)an increase in the reserve requirement

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Definitions:

Ultimatum Game

A game in experimental economics in which two players decide on how to divide a sum of money; one player proposes a division, and the other can accept or reject it.

Dictator Game

An experimental game in economics where one player (the "dictator") determines how to split an endowment between themselves and another player.

Neoclassical Economics

A framework within economics that predominantly focuses on the determination of goods, outputs, and income distributions in markets through supply and demand as mediated by prices.

Behavioral Economics

A field of economics that studies how psychological, cognitive, emotional, cultural, and social factors affect economic decisions.