In the Aggregate Supply-Aggregate Demand Model, Raising the Federal Funds

question 210

Multiple Choice

In the aggregate supply-aggregate demand model, raising the federal funds rate initially

• A) increases aggregate demand.
• B) decreases aggregate demand.
• C) increases long-run aggregate supply.
• D) decreases long-run aggregate supply.

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Definitions:

Means

The average of a set of numbers, calculated by dividing the sum of all the values by the count of the values.

Equal-variances Test

A statistical test used to check if two populations have equal variances.

Student T-distributed

The Student's t-distribution is a probability distribution that is symmetric and bell-shaped, used especially in small sample sizes for estimating population parameters.

Degrees Of Freedom

The quantity of distinct values or parameters that can be allocated to a statistical test or distribution while adhering to all restrictions.