Which of the following scenarios would cause the equilibrium interest rate to fall?

Choose the correct answer

Explanation

A reduction in the general price level lowers the demand for money, which in turn decreases the equilibrium interest rate. Other options such as selling government securities, increasing aggregate output, or raising the discount rate tend to increase or maintain the interest rate rather than reduce it.

Which of the following scenarios would cause the equ… — Money, Interest Rates And Output | PakQuizHub