A Well-Tested Hypothesis That Has Not Been Disproved Is Called

question 14

Multiple Choice

A well-tested hypothesis that has not been disproved is called a

• A)principle.
• B)law.
• C)theory.
• D)fact.
• E)hypothesis.

---

Definitions:

Money Supply

The total amount of monetary assets available in an economy at a specific time, including currency and various types of bank deposits.

Open Market Purchases

Actions by a central bank to buy securities in the open market to increase the money supply and lower interest rates, aiming to stimulate economic activity.

Reserve Requirement

The minimum amount of reserves a bank is mandated to hold by central banking authorities, akin to the reserve ratio.

Reserve Ratio

A central bank regulation that sets the minimum fraction of customer deposits and notes that each commercial bank must hold as reserves rather than lending out.