It Is Estimated That If the Inflation Rate Is Lowered

question 6

Multiple Choice

It is estimated that if the inflation rate is lowered from 3 percent a year to 0 percent a year, the growth rate of real GDP will rise by ________ percentage points a year.

• A) 0.06 to 0.09
• B) 1 to 3
• C) 2.3
• D) 3.2
• E) 0

---

Definitions:

Binomial Random Variable

A type of discrete random variable that counts how often a particular event occurs in a fixed number of tries or trials.

Normal Approximation

A statistical method where a binomial distribution is approximated using the normal distribution, usually applied when sample sizes are large.

Probability

A measure of the likelihood that an event will occur, expressed as a number between 0 and 1, where 0 indicates impossibility and 1 indicates certainty.

Eligible Voters

Individuals who meet certain criteria, such as age and citizenship status, making them qualified to vote in an election.