Bank Runs and the Accompanying Increase in the Money Multiplier

question 179

True/False

Bank runs and the accompanying increase in the money multiplier caused the U.S. money supply to rise by 28 percent from 1929 to 1933.

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Definitions:

Pearson Correlation

A statistical measure that calculates the strength and direction of the linear relationship between two quantitative variables.

Pearson Correlation

A measure of linear correlation between two variables, ranging from -1 to 1, where 1 means a perfect positive linear relationship, -1 means a perfect negative linear relationship, and 0 indicates no linear relationship.

Non-Directional

Refers to a hypothesis that predicts a change or difference but does not specify the direction of the change.

Sample Size

The number of observations or data points collected from a subset of a larger population for the purpose of statistical analysis.