Some Economists Argue That a Rise in the Interest Rate,brought

question 132

Multiple Choice

Some economists argue that a rise in the interest rate,brought about by a rise in government borrowing in the loanable funds market to finance the deficit,brings in foreign funds in search of the higher interest rate return.This,in turn,dampens the rise in the interest rate.If this is true as far as it goes,there will be __________ crowding out than there would be if foreign funds did not flow into the country.

• A) more
• B) less
• C) the same amount of
• D) none of the above

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Definitions:

Test Of Significance

Statistical tests used to determine the likelihood that a relationship observed in data occurred by chance.

Categorical Data

Categorical data refers to variables that represent categories or groups, such as gender or eye color, which can be used in statistical analysis to compare different groups.

Confidence Intervals

A range of values, derived from a data set, used to estimate the uncertainty surrounding an estimated parameter.

Sampling Distribution

The probability distribution of a given statistic based on a random sample, used for hypothesis testing and constructing confidence intervals.