Which of the Following Pairs of Events Will Definitely Lead

question 17

Multiple Choice

Which of the following pairs of events will definitely lead to an increase in the equilibrium interest rate?

• A)the sale of government securities by the Federal Reserve and an increase in nominal aggregate output
• B)a decrease in the discount rate and an increase in the level of nominal aggregate output
• C)the purchase of government securities by the Federal Reserve and a decrease in nominal aggregate output
• D)an increase in the required reserve ratio and a decrease in the level of nominal aggregate output

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