To Increase the Money Supply, Which of the Following Could

question 22

Multiple Choice

To increase the money supply, which of the following could the Bank of Canada do?

• A)sell government bonds
• B)increase the bank rate
• C)decrease the reserve requirement
• D)decrease the money multiplier

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Definitions:

Critical Value

A point on the scale of the test statistic beyond which we reject the null hypothesis; it defines the boundary for the region of rejection.

Power

The probability that a statistical test will correctly reject a false null hypothesis, effectively detecting an actual effect.

Type II Error

The mistake of failing to reject a false null hypothesis, also known as a "false negative" finding.

Dependent-Samples T-Test

A statistical test used to compare the means of two related groups, indicating if any difference between them is statistically significant.