Which of the Following Is Correct

question 10

Multiple Choice

Which of the following is correct?

• A)Economic forecasts are precise and aggregate spending responds almost immediately to interest rate changes.
• B)Economic forecast are precise and aggregate spending responds to interest rate changes with a lag.
• C)Economic forecasts are imprecise and aggregate spending responds almost immediately to interest rate changes.
• D)Economic forecast are imprecise and aggregate spending responds to interest rate changes with a lag.

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Definitions:

Status Quo

The current state or condition of affairs, often referred to in discussions about change.

Null Hypothesis

A statement or assumption that there is no significant difference or effect, serving as the default assumption in hypothesis testing.

Startling New Claims

Claims or assertions that are surprising and have recently come to light, often attracting significant attention.

Null Hypothesis

A statement of no effect or no difference, which researchers aim to test against the alternative hypothesis.