In the Long Run

question 29

Multiple Choice

In the long run,

• A) an increase in the federal budget deficit can lower the interest rate and investment spending.
• B) an increase in the federal budget deficit can raise the interest rate and investment spending.
• C) a decrease in the federal budget deficit can lower the interest rate and raise investment spending.
• D) a decrease in the federal budget deficit can raise the interest rate and lower investment spending.
• E) a decrease in the federal budget deficit can lower the interest rate and lower investment spending.

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Definitions:

Nondirectional Research Hypothesis

A research hypothesis that posits a difference between groups but not in either direction. See Directional Research Hypothesis.

Null Hypothesis

A hypothesis that there is no significant difference or effect, serving as the default assumption that is tested against.

Error Hypothesis

A statement positing the existence of a difference or effect, used in the context of hypothesis testing to denote a hypothesis that is tested for being in error relative to the null.

Larger Population

Refers to a bigger group or category of individuals from which samples can be drawn for statistical analysis.