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The effect of an open market purchase on reserves differs depending on how the seller of the bonds keeps the proceeds.If the proceeds are kept in ________,the open market purchase has no effect on reserves; if the proceeds are kept as ________,reserves increase by the amount of the open market purchase.
Confirmatory Factor Analysis (CFA)
A statistical technique used to test the hypothesis that a relationship between observed variables and their underlying latent constructs exists.
Cross-validation
A statistical method used to estimate the performance of a model by partitioning the data into subsets, training the model on one subset, and validating it on another.
Factor Analysis
A statistical method used to identify underlying variables, or factors, that explain the pattern of correlations within a set of observed variables.
Psychological Constructs
Abstract entities used to describe and explain emotions, attitudes, intelligence, and other psychological phenomena.
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