If the Federal Reserve lowers reserve requirements, which of the following is most likely to happen to interest rates and gross domestic product?

Variable ordering: Interest Rate, Nominal GDP 

(a) Increase Decrease

(b) Increase Increase

(c) Decrease Decrease

(d) Decrease Increase

(e) No change No change cession/inflation,

After the success of the company's first two months, Santana Rey continues to operate Business Solutions. (Transactions for the first two months are described in the The November 30, 2021, unadjusted trial balance of Business Solutions (reflecting its transactions for October and November of 2021) follows. No. 101 106 126 128 131 163 164 167 168 201 210 236 301 302 403 612 613 623 637 640 652 655 676 677 684 Account Title Cash Accounts receivable Computer supplies Prepaid insurance Prepaid rent Office equipment Accumulated depreciation-Office equipment Computer equipment Accumulated depreciation-Computer equipment Accounts payable Wages payable Unearned computer services revenue S. Rey, Capital S. Rey, Withdrawals Computer services revenue Depreciation expense-Office equipment Depreciation expense-Computer equipment Wages expense Insurance expense Rent expense Computer supplies expense Advertising expense Mileage expense Miscellaneous expenses Repairs expense-Computer Totals Business Solutions had the following transactions and events in December 2021. Debit $38,264 12,618 2,545 2,220 3,300 8,000 20,000 5,600 0 0 2,625 0 0 0 1,728 704 250 805 $98,659 Credit 0 0 0 73,000 25,659 $98,659 Business Solutions had the following transactions and events in December 2021. Dec. 1 1 Totals 16 20 2 Paid $1,025 cash to Hillside Mall for Business Solutions's share of mall advertising costs. 3 Paid $500 cash for minor repairs to the company's computer. 4 Received $3,950 cash from Alex's Engineering Co. for the receivable from November. 10 Paid cash to Lyn Addie for six days of work at the rate of $125 per day. 14 Notified by Alex's Engineering Co. that Business Solutions's bid of $7,000 on a proposed project has been accepted. Alex's paid a $1,500 cash advance to Business Solutions.. 15 Purchased $1,100 of computer supplies on credit from Harris Office Products. 22-26 28 $98,659 $98,659 Sent a reminder to Gomez Co. to pay the fee for services recorded on November 8. Completed a project for Liu Corporation and received $5,625 cash. Took the week off for the holidays. Received $3,000 cash from Gomez Co. on its receivable. 29 Reimbursed S. Rey for business automobile mileage (600 miles at $0.32 per mile). 31 S. Rey withdrew $1,500 cash from the company for personal use. The following additional facts are collected for use in making adjusting entries prior to preparing financial statements for the company's first three months. a. The December 31 inventory count of computer supplies shows $580 still available. b. Three months have expired since the 12-month insurance premium was paid in advance. c. As of December 31, Lyn Addie has not been paid for four days of work at $125 per day. d. The computer system, acquired on October 1, is expected to have a four-year life with no salvage value. e. The office equipment, acquired on October 1, is expected to have a five-year life with no salvage value. f. Three of the four months' prepaid rent have expired. Check (3) Adjusted trial balance totals, $109,034 Page 122 Required 1. Prepare journal entries to record each of the December transactions and events for Business Solutions. Post those entries to the accounts in the ledger. 2. Prepare adjusting entries to reflect a through f. Post those entries to the accounts in the ledger. 3. Prepare adjusted trial balance as of December 31, 2021.