When the Price Level in the United States Rises, Then

question 2

Multiple Choice

When the price level in the United States rises, then net exports should

• A)rise and equilibrium real GDP should increase.
• B)fall and equilibrium real GDP should increase.
• C)fall and equilibrium real GDP should decrease.
• D)rise and equilibrium real GDP should decrease.

Calculate the F-test statistic for comparing two sample variances.

Determine the critical value and rejection region from the F-table.

Understand the role of sample size in the significance of the F-test.

Distinguish between one-tailed and two-tailed tests in variance comparison.

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Definitions:

Spot Rates

The current price at which a particular security, currency, or commodity can be bought or sold for immediate delivery.

Cash-Flow Hedge

A form of hedge accounting that protects against the variability in cash flows of a recognized asset or liability, or a forecasted transaction.

Other Comprehensive Income

Gains and losses that are not included in net income, but affect shareholders' equity, including items like unrealized gains or losses on foreign currency translations and on investment securities.

Forward Contract

A customized financial agreement between two parties to buy or sell an asset at a specified price on a future date, often used for hedging risks.