Table 153
Cordelia Saldinia The Above Table Contains Data for the Nations of Cordelia

question 19

Multiple Choice

Table 15.3
Cordelia Saldinia
$$\begin{array} { | l | r | r | } \hline \text { Debt-to-cDP ratio } & 172 \% & 65 \% \\\hline \text { Average annual ecanmaic growth } & & \\\text { unt } & 4.7 \% & 3.2 \% \\\hline \text { Average influtim rate } & 6.3 \% & - 0.3 \% \\\hline \text { Average nominal interest rate } & 2.5 \% & 4.6 \% \\\hline\end{array}$$
The above table contains data for the nations of Cordelia and Saldinia for 2012. Assume seigniorage is zero.
-Refer to Table 15.3.Based on the data in the table,the primary budget deficit necessary to make fiscal policy sustainable in Cordelia is ________ of GDP.

• A) -1.5%
• B) 0%
• C) 1.5%
• D) 14.6%

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Definitions:

Null Hypothesis

A statement suggesting that there is no significant difference or relationship between specified populations, any observed difference being due to sampling or experimental error.

Null Hypothesis

A statement in statistical hypothesis testing that assumes no effect or no difference between phenomena or populations.

Level of Risk

The probability or chance of experiencing harm or loss.

One-sample Z-test

A statistical test used to determine whether there is a significant difference between the mean of a sample and a known or hypothesized population mean.