The Crowding-In Effect Depends on the Fact That Often a Decrease

question 135

Multiple Choice

The crowding-in effect depends on the fact that often a decrease in taxes causes a(n)

• A)decrease in interest rates and an increase in the price of existing bonds.
• B)increase in output, which induces more investment.
• C)increase in interest rates and a decrease in the price of existing bonds.
• D)decrease in interest rates and the price of existing bonds.

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Definitions:

Sampling Error

The discrepancy between a sample statistic and its corresponding population parameter, arising purely by chance because the sample is not a perfect representation of the population.

Nondirectional Research Hypothesis

A hypothesis suggesting a correlation between variables without defining the nature of their interaction.

Generalizability

The extent to which the findings from a study can be applied to a wider population or different contexts.

Null Hypothesis

A statement that asserts there is no effect or no difference, and it is the hypothesis that researchers aim to test against.