Use the Following to Answer Questions

question 123

Multiple Choice

Use the following to answer questions
Figure: Market for Loanable Funds

-(Figure: Market for Loanable Funds) If the interest rate is 5% in this market for loanable funds,then:

• A) savings exceeds investment by $200 million.
• B) savings exceeds investment by $100 million.
• C) savings exceeds borrowing demands by $200 million.
• D) savings exceeds borrowing demands by $100 million.

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Definitions:

T-test

A statistical test used to compare the means of two groups or test a single mean against a known value.

Critical Value

A point on the scale of the test statistic beyond which we reject the null hypothesis; it defines the cutoff between significance and non-significance.

Null Hypothesis

A hypothesis that suggests there is no significant difference between specified populations, or no association among groups.

Null Hypothesis

A statistical hypothesis that assumes no effect or no difference in an experiment or study, serving as the default assumption to be tested.