When Using Statistics in Economics,the Possibility of Error

question 87

Multiple Choice

When using statistics in economics,the possibility of error

• A)cannot be eliminated.
• B)cannot be controlled.
• C)cannot be evaluated.
• D)is not considered to be important.
• E)can be eliminated with more sophisticated statistical techniques.

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Definitions:

Reserve Requirement

The reserve requirement is a central banking regulation that sets the minimum amount of reserves that must be held by a commercial bank, not to be loaned out, to ensure bank liquidity and stability.

Open Market Sale

The sale of government bonds by the central bank to reduce the money supply in the economy.

Money Supply

The complete sum of available financial resources in an economy, including cash, coins, and the funds available in checking and savings accounts, at a particular instant.

Inflationary Tendencies

The general tendencies or trends towards increasing prices and diminishing purchasing power over time within an economy.