If a Reform of the Tax Laws Encourages Greater Saving

question 70

Multiple Choice

If a reform of the tax laws encourages greater saving, the result would be

• A) higher interest rates and greater investment.
• B) higher interest rates and less investment.
• C) lower interest rates and greater investment.
• D) lower interest rate and less investment.

---

Definitions:

Null Hypothesis

An assertion that there is no significant difference or relationship between specified populations, groups, or variables.

FA

A statistical method, factor analysis, used to describe variability among observed, correlated variables.

Reject

In statistical analysis, the act of not accepting a hypothesis based on the evidence from data.

H0

Symbol for the null hypothesis, indicating the hypothesis that there is no effect or no difference, and any observed effect is due to chance.