During the Mid-To-Late 1930s

question 69

Multiple Choice

During the mid-to-late 1930s

• A)the Fed cut reserve requirements in order to stimulate the economy.
• B)banks accumulated substantial excess reserves.
• C)the Fed successfully reduced bank holdings of excess reserves by raising required reserve ratios.
• D)the economy grew rapidly despite large increases in bank holdings of excess reserves and increases in required reserve ratios.

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Definitions:

Alpha

A threshold value used in hypothesis testing that represents the level of significance, typically set at 0.05 or 0.01, indicating the probability of wrongly rejecting the null hypothesis.

Chi-square Statistic

A statistical measure used to determine if there is a significant relationship between two categorical variables.

Degrees of Freedom

The number of independent values or quantities that can vary in the calculation of a statistic.

Critical Value

A threshold in hypothesis testing that defines the boundary between the region where the null hypothesis is rejected and where it is not.