An Increase in the Real Exchange Rate Will Tend to ________

question 150

Multiple Choice

An increase in the real exchange rate will tend to ________ exports and to ________ imports.

• A)increase; decrease
• B)increase; increase
• C)decrease; decrease
• D)decrease; increase

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Definitions:

Type II Error

The failure to reject a false null hypothesis or a false negative in hypothesis testing.

Significance Level

The significance level, denoted by alpha, is the threshold chosen by researchers below which a p-value must fall for results to be considered statistically significant.

Null Hypothesis

A statistical hypothesis that asserts there is no effect or no difference, and any observed deviation from this hypothesis is due to random variation.

Type II Error

A statistical error occurring when the null hypothesis is not rejected when it actually is false.