The Domestic Real Interest Rate in a Small Open Economy

question 33

Multiple Choice

The domestic real interest rate in a small open economy is

• A) determined by the intersection of the supply curve and demand curve for loanable funds in the country.
• B) equal to the world real interest rate.
• C) the same as its nominal interest rate.
• D) determined by the total value of net exports in the country.

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Definitions:

Wilcoxon Signed-Rank Test

A nonparametric statistical hypothesis test used to compare two related samples, matched samples, or repeated measurements on a single sample to assess whether their population mean ranks differ.

Matched Paired

A study design in which subjects are paired based on certain criteria, with each pair receiving different treatments for comparison of the effects.

Direction Of Difference

Refers to the predicted or observed direction of relationships or differences between variables in statistical analysis, indicating whether the effect is positive or negative.

Sign Test

A statistical procedure used for assessing whether paired observations have different median values, without assuming any specific data distribution.