Which of the Following Will Increase Interest Rates in the Short

question 94

Multiple Choice

Which of the following will increase interest rates in the short run?

• A)an decrease in reserve requirements 
• B)open market sales by the Fed 
• C)a decrease in real GDP 
• D)an decrease in the price level

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Definitions:

Merchandise

Goods or products that are purchased for resale to customers, typically found in a retail or wholesale environment.

Sales

The revenue earned from selling goods or services to customers.

Bank Credit Cards

Financial instruments issued by banks that allow users to borrow funds for purchases, subject to repayment terms and interest.

Cash Sales

Transactions where goods or services are purchased and paid for with cash at the time of the sale.