Which of the Following Pairs of Events Will Definitely Lead

question 65

Multiple Choice

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

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Definitions:

Management Rights

The prerogatives and authority granted to employers to operate and manage their business, including decisions about hiring, work assignments, processes, and disciplinary actions.

Double Taxation

The imposition of taxes on the same income, asset, or financial transaction at two different levels of government, such as both state and federal taxes on the same income.

Partnership

This is a juridically permitted structure for conducting business that necessitates the collaboration of two or more people in both the governance and profit distribution of the enterprise.

Share Control

The management or influence over the voting rights and other aspects of a company’s shares, often indicating power to make significant decisions.