An Increase in the Budget Deficit

question 114

Multiple Choice

An increase in the budget deficit

• A)reduces net capital outflow and domestic investment.
• B)reduces net capital outflow and raises domestic investment.
• C)raises net capital outflow and domestic investment
• D)raises net capital outflow and reduces domestic investment.

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Definitions:

Two-Tailed Test

A statistical test of hypothesis where the area of interest spans both tails of the distribution, allowing for investigation of deviations in two opposite directions.

Sample Proportions

The fraction or percentage of observations in a sample that fall into one particular category or class.

Standard Error

The standard deviation of the sampling distribution of a statistic, commonly the mean, indicating the variation of a sample statistic from the population parameter.

Lower Tailed Test

A statistical hypothesis test where the critical area of a distribution is in its lower tail, used to determine if a sample mean is significantly lower than a known or assumed population mean.