If Alpha Is Changed from

question 77

Multiple Choice

If alpha is changed from .05 to .01, then the probability of a Type I error.

• A)increases
• B)remains unchanged
• C)decreases
• D)increases or decreases depending on the size of the sample

---

Definitions:

Real Interest Rate

The rate of interest an investor expects to receive after allowing for inflation, representing the true cost of borrowing.

National Saving

The sum of savings made by both individuals and the government within a country, crucial for financing national investments.

Real Exchange Rate

An exchange rate that has been adjusted to reflect the purchasing power of different currencies.

Demand For Dollars

Refers to the desire or need by individuals, businesses, or countries to hold assets in U.S. dollars, influenced by factors like stability and strength of the U.S. economy.