A Decrease in Interest Rates Raises

question 50

Multiple Choice

A decrease in interest rates raises

• A) the currency ratio.
• B) time deposits.
• C) money supply.
• D) checkable deposits.

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Definitions:

Null Hypothesis

A hypothesis that suggests there is no statistical significance between the two variables in the hypothesis.

Alpha Level

Alpha level, or significance level, is the threshold of probability at which you reject the null hypothesis, typically set at 0.05 or 5%.

Critical Values

Critical values are specific points on the scale of a test statistic that determine the boundary for rejecting the null hypothesis.

Type I Error

The incorrect rejection of a true null hypothesis, or a false positive, in statistical hypothesis testing.