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

question 119

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 of Canada securities by the Bank of Canada
• C)a decrease in GDP
• D)an increase in the discount rate
• E)an increase in the reserve requirement

---

Definitions:

Direct Labor

The wages and other compensation paid to workers who are directly involved in the production of goods or the delivery of services.

Job Order Cost Accounting

A cost accounting system in which costs are assigned to specific jobs or batches and is used for custom orders.

T Accounts

A type of graphical representation used in accounting to depict accounts, where the left side of the "T" records debits and the right side records credits.

Transactions

Financial events that involve the transfer of resources between two parties, impacting the financial position of an entity.