Suppose an Economy Existed in Which Investment, Net Exports, and Consumption

question 64

Multiple Choice

Suppose an economy existed in which investment, net exports, and consumption were not sensitive to changes in interest rates. For this economy, the AD curve would

• A)have a slope less than 1 but greater than zero.
• B)be horizontal.
• C)have a negative slope.
• D)be vertical.
• E)have a slope equal to 1.

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Definitions:

Mass Spectrometry

An analytical technique that measures the mass-to-charge ratio of ions to identify and quantify molecules in a sample.

Chi-square Statistic

The Chi-square statistic is a measure used in statistics to evaluate how well an observed distribution fits with an expected distribution.

Null Hypothesis

A default hypothesis that there is no effect or no difference, and any observed deviation is due to random chance.

Expected Counts

In statistics, the predicted number of times an event is to occur in a study or experiment based on probability.