In the Cause-Effect Chain Linking Changes in the Banks' Excess

question 286

Multiple Choice

In the cause-effect chain linking changes in the banks' excess reserves and the resulting changes in output and employment in the economy,

• A) a decrease in aggregate demand will increase output.
• B) an increase in the money supply will decrease the rate of interest.
• C) a decrease in excess reserves will increase the money supply.
• D) a decrease in the rate of interest will decrease aggregate demand.

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Definitions:

Statistically Significant

Statistically significant refers to a result that is unlikely to have occurred by chance alone, according to a predetermined threshold of probability, indicating a likely genuine effect.

Double-blind Study

A double-blind study is a research design in which neither the participants nor the experimenters know who is receiving a particular treatment, to eliminate bias.

Experimental Group

The group in an experiment that receives the variable being tested, as opposed to the control group.

Control Group

A group in an experiment that does not receive the experimental treatment and is used as a benchmark to measure how the other tested subjects do.