Examlex
Recall Application 1, "Avoiding a Liquidity Trap," to answer the following questions:
-What is the reason why the Fed started paying interest on bank reserves in 2008?
Significance
The likelihood that an observed difference or relationship in data did not occur by chance, often measured through statistical tests.
Regression
A statistical method used to examine the relationship between a dependent variable and one or more independent variables.
Residuals
The differences between observed values and the values predicted by a statistical model, indicating the accuracy of the model's predictions.
Statistical Significance
Refers to the likelihood that a relationship between two or more variables is caused by something other than random chance.
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