Other Things Being Equal, a Decrease in the Money Supply

question 62

Multiple Choice

Other things being equal, a decrease in the money supply will lead to in real interest rates and, in the short run, _ in real GDP because _ .

• A)a decrease; a decrease, of the decrease in net exports.
• B)a decrease; a decrease; of the decrease in domestic investment.
• C)a decrease; an increase; of the increase in domestic investment.
• D)an increase; a decrease; of the decline in domestic investment.
• E)an increase; an increase; more money is available for investing in bonds from abroad

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Definitions:

2 × 2 Table

A contingency table with two rows and two columns used to display the frequency distribution of variables' combinations.

Significance Level

The threshold below which a p-value is considered strong enough to reject the null hypothesis in statistical testing.

Degrees of Freedom

The number of independent values or quantities that can vary in the calculation of a statistic, often impacting its distribution.

One-sample Chi-square Test

A statistical test used to determine whether there is a significant difference between the expected frequencies and the observed frequencies in one or more categories.