Fiscal Policy Refers to the Idea That Changes In

question 34

Multiple Choice

Fiscal policy refers to the idea that changes in:

• A)the Reserve Bank of Australia with its money supply mechanisms can affect aggregate demand
• B)government purchases and taxing policy can affect aggregate demand
• C)the price level affects the equilibrium interest rate
• D)the exchange rate affects net exports

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Definitions:

Type II Error

The mistake of failing to reject a null hypothesis when it is actually false, commonly represented by the symbol β (beta).

One-Tailed Test

A hypothesis test in which the region of rejection is only on one side of the sampling distribution, used when a research hypothesis predicts a direction of the effect.

P-Value

The p-value measures the evidence against the null hypothesis, indicating the probability of observing the test results under the null hypothesis.

Two-Tailed

Pertains to a type of hypothesis test where the area of interest is in both tails of the distribution, indicating that deviations from the null hypothesis in either direction are considered.