The Investment Demand Function Would Shift for All of the Following

question 63

Multiple Choice

The investment demand function would shift for all of the following reasons except:

• A) an improvement in technology raises the marginal product of capital.
• B) an increase in population raises the demand for housing.
• C) an increase in government spending raises the real interest rate.
• D) the investment tax credit is reinstated.

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Definitions:

Chi-Squared Distribution

A statistical distribution that is used to describe the distribution of a sum of the squares of k independent standard normal variables, commonly used in hypothesis testing.

Chi-Squared Distributed

Referring to a statistical distribution that arises from the sum of the squares of variables that follow a standard normal distribution.

Degrees of Freedom

The number of values in a statistical calculation that are free to vary, often linked to the size of the data set.

P-Value

The probability that the observed data would occur if the null hypothesis were true, used as a measure to decide whether to reject the null hypothesis.