When Mexico Suffered from Capital Flight in 1994, What Happened

question 54

Multiple Choice

When Mexico suffered from capital flight in 1994, what happened to Mexico's real interest rate and the peso?

• A)The real interest rate fell and the peso appreciated.
• B)The real interest rate fell and the peso depreciated.
• C)The real interest rate rose and the peso appreciated.
• D)The real interest rate rose and the peso depreciated.

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Definitions:

Parametric Techniques

Statistical techniques based on assumptions about the population parameters and the distribution that the data comes from.

Normally Distributed

Symmetric around the mean, this probability distribution illustrates a decline in occurrences as you move away from the mean, emphasizing more frequent near-mean data points.

Population Assumptions

Premises or conditions considered to be true about a population from which a sample is drawn for statistical analysis.

Wilcoxon Rank Sum Test

A statistical test that doesn't rely on parameter-based data, designed to evaluate if there's a difference in the population mean ranks between two unrelated samples.