The Probability That House Sales Will Increase in the Next

question 66

Multiple Choice

The probability that house sales will increase in the next 6 months is estimated to be 0.25.The probability that the interest rates on housing loans will go up in the same period is estimated to be 0.74.The probability that house sales or interest rates will go up during the next 6 months is estimated to be 0.89.The probability that house sales will increase but interest rates will not during the next 6 months is:

• A)0.065
• B)0.15
• C)0.51
• D)0.89

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Definitions:

Net Exports

The value of a country’s total exports minus its total imports, which can indicate the country’s economic strength in international trade.

Interest Rates

The percentage at which interest is charged or paid for the use of money.

Federal Reserve System

The Federal Reserve System, which is the main banking authority in the U.S., oversees monetary policy.

Elastic Currency

A currency system that can expand or contract in supply in response to economic needs, often managed by a central banking authority.