Which of the Statements Is False

question 36

Multiple Choice

Which of the statements is false?

• A) Not all economists are agreed as to whether government should bail out companies in financial trouble.
• B) Not all economists prefer a rule-based monetary policy to discretionary monetary policy.
• C) Rule-based monetary policy advocates often assert that discretionary monetary policy can be motivated by politics.
• D) The tax multiplier is necessarily larger than the government spending multiplier.

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Definitions:

Null Hypothesis

A hypothesis that assumes no statistical significance exists in a set of given observations and that any observed difference is due to chance.

T = 1.965

A specific value often used in statistical analysis, particularly in hypothesis testing, where it represents a critical value in a t-distribution.

Critical Value

A point on the test distribution that is compared with the test statistic to decide whether to reject the null hypothesis.

α

Denotes the level of significance in hypothesis testing, commonly set at 0.05, indicating a 5% risk of concluding an effect exists when it does not.