According to the Principle of Falsifiability

question 22

Multiple Choice

According to the principle of falsifiability:

• A) false conclusions are reached in a scientific study when researchers make risky predictions.
• B) researchers must conduct naturalistic observations in order to reach a causal explanation about a particular behaviour.
• C) hypotheses should be considered false until scientific research proves, without a doubt, that they are true.
• D) a scientific theory must make predictions that are specific enough to expose the theory to the possibility of disconfirmation.

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Definitions:

Real Interest Rate

The interest rate adjusted for inflation, reflecting the true cost of borrowing and the real yield to investors.

Real Interest Rate

The interest rate adjusted for inflation, representing the true cost of borrowing and the real yield to savers.

Nominal Interest Rate

The interest rate as stated without adjustment for inflation, representing the actual percentage amount charged for borrowing money.

Inflation Rate

The percentage increase in the price level of goods and services in an economy over a given period of time.