If the Current Account Is in Deficit, We Know That

question 145

Multiple Choice

If the current account is in deficit, we know that

• A)the merchandise trade balance is also in deficit.
• B)the merchandise trade balance is in surplus.
• C)the capital account is in surplus.
• D)there is a statistical discrepancy in the surplus.

Understand the definition and significance of alpha (α) in hypothesis testing.

Describe the role of critical values in hypothesis testing.

Distinguish between the regions of rejection and non-rejection in hypothesis testing.

Interpret the outcome of a hypothesis test based on the calculated statistic's position relative to the critical value.

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Definitions:

Covariance

A measure that indicates the degree to which two variables change together. If the variables tend to show similar behavior, the covariance is positive; if they show opposite behavior, the covariance is negative.

Standard Deviation

A system for measuring the degree of difference or spread in a set of figures.

Scatterplot

A graphical representation of two variables on a set of Cartesian coordinates to investigate the relationship between them.

Independent Variable

An experimental or study factor that is altered to determine its impact on a variable that depends on it.