A Decrease in Foreign Output Would Cause the Domestic Country's

question 52

Multiple Choice

A decrease in foreign output would cause the domestic country's net exports to ________ and cause the domestic country's IS curve to ________.

• A)rise; shift up
• B)rise; shift down
• C)fall; shift up
• D)fall; shift down

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Definitions:

Sample Mean

The average value of a set of observations taken from a sample, which is used to estimate the mean of the entire population.

Hypotheses

Hypotheses are proposed explanations made on the basis of limited evidence as a starting point for further investigation.

Rejection Region

The range of values for which the null hypothesis is considered unlikely and is rejected in a hypothesis test.

Significance Levels

Significance levels indicate the probability of observing the test statistic as extreme as the results obtained, given that the null hypothesis is true, acting as a criterion for the decision of whether to reject it.