Because of Their Effect on Interest Rates

question 29

Multiple Choice

Because of their effect on interest rates,

• A)capital flows weaken monetary policy but strengthen fiscal policy.
• B)capital flows strengthen monetary policy but weaken fiscal policy.
• C)the initial effects of a fiscal expansion on aggregate demand are strengthened.
• D)the initial effects of a monetary contraction are weakened.

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Definitions:

Confidence Interval

A range of values, derived from sample statistics, that is likely to contain the value of an unknown population parameter.

Independent Variable

In statistical analysis, a variable that is manipulated to observe its effect on another variable, often called the dependent variable.

Uncertainty

The state or condition in which something is not known or certain, often relating to variables or outcomes in data analysis.

Probability Distribution

A mathematical function detailing every potential value and its corresponding probability that a random variable may assume across a specified interval.