Which of the following pairs of events will definitely lead to a decrease in the equilibrium interest rate? Select one: O a. sale of government securities and a decrease in the price level (P) O b. a decrease in the required reserve ratio and a decrease in nominal aggregate output (Y) O c. purchase of government securities and an increase in nominal aggregate output (Y) O d. an increase in the discount rate and an increase in the price level (P)

Essentials of Economics (MindTap Course List)
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ISBN:9781337091992
Author:N. Gregory Mankiw
Publisher:N. Gregory Mankiw
Chapter24: The Influence Of Monetary And Fiscal Policy On Aggregate Demand
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Which of the following pairs of events will definitely lead to a decrease in the equilibrium interest rate?
Select one:
O a. sale of government securities and a decrease in the price level (P)
O b. a decrease in the required reserve ratio and a decrease in nominal aggregate output (Y)
O c. purchase of government securities and an increase in nominal aggregate output (Y)
O d. an increase in the discount rate and an increase in the price level (P)
ge
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Transcribed Image Text:Which of the following pairs of events will definitely lead to a decrease in the equilibrium interest rate? Select one: O a. sale of government securities and a decrease in the price level (P) O b. a decrease in the required reserve ratio and a decrease in nominal aggregate output (Y) O c. purchase of government securities and an increase in nominal aggregate output (Y) O d. an increase in the discount rate and an increase in the price level (P) ge Next page n this page
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