The Interest Rate Falls When Either the Demand for Bonds

question 20

Multiple Choice

The interest rate falls when either the demand for bonds ________ or the supply of bonds ________.

• A)increases;increases
• B)increases;decreases
• C)decreases;decreases
• D)decreases;increases

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Definitions:

Null-hypothesis Significance Testing

A statistical method used to determine if there is enough evidence in a sample of data to infer that a certain condition holds true for the entire population.

P-value

A statistical measure that helps scientists determine the strength of their evidence; it indicates the probability of observing their data, or something more extreme, if the null hypothesis were true.

Statistically Significant

A term indicating that the results of an analysis are unlikely to be due to chance, according to a predefined threshold of probability.

Atheoretical

Lacking a theoretical basis, not guided by a theory.