Which of the Following Statements Is Correct

question 166

Multiple Choice

Which of the following statements is correct?
I. A drop in the foreign exchange value of the dollar would decrease aggregate demand
II. A decrease in the amount of money in circulation would increase aggregate demand

• A)I only
• B)II only
• C)Both I and II
• D)Neither I nor II

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Definitions:

Null Hypothesis

A hypothesis that suggests there is no statistical significance in a set of given observations, implying no effect or relationship.

Linear Relationship

A relationship between two variables where the change in one variable is directly proportional to the change in another variable.

Pearson Correlation

A statistical measure that calculates the strength and direction of a linear relationship between two quantitative variables.

Covariance

A measure that indicates the extent to which two variables change together; if the greater values of one variable mainly correspond with the greater values of the other variable, and the same holds for the lesser values.