(Last Word) According to the Austrian School, the Best Explanation

question 118

Multiple Choice

(Last Word) According to the Austrian School, the best explanation for what caused the Great Recession was that

• A)tax rates that were too high discouraged spending.
• B)government spending that was too low created insufficient public capital.
• C)interest rates that were too low induced excessive borrowing.
• D)interest rates that were too high discouraged firm borrowing and investment.

---

Definitions:

Sample Size

The number of observations or datapoints collected in a sample, critical in determining the precision of estimates and power of statistical tests.

Type II Error

The statistical mistake of failing to reject a null hypothesis when it is actually false.

Null Hypothesis

A statistical hypothesis that proposes there is no significant difference or effect within the specified population.

Alternative Hypothesis

A hypothesis that contradicts the null hypothesis, asserting there is a significant difference or effect.