If a Fiscal Policy Change Is Going to Exert a Stabilizing

question 73

Multiple Choice

If a fiscal policy change is going to exert a stabilizing impact on the economy,it must

• A)be expansionary.
• B)be restrictive.
• C)be timed correctly.
• D)keep the federal budget in balance.

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Definitions:

Cramér's V

An association measure for categorical data, providing a value that indicates the strength of association.

Degrees of Freedom

Degrees of freedom refer to the number of independent pieces of information used in the calculation of a statistic, often related to the number of samples minus the number of parameters estimated.

P Value

A statistical measure that indicates whether the results of an experiment are significant, specifically it measures the probability of observing the given results if the null hypothesis were true.

Type II Error

Error that occurs when the alternative hypothesis is true but the decision is made to not reject the null hypothesis.