Which of the Following Would Be Consistent with an Increase

question 162

Multiple Choice

Which of the following would be consistent with an increase in the Canadian real interest rate?

• A)A Swiss bank purchases a Canadian bond instead of the German bond it had considered purchasing.
• B)Canadian firms decide, since interest rates are higher, to do more investment spending.
• C)Brad, a Canadian resident, decides to put less money in his savings account than he had planned to.
• D)Canadian net exports increase.

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Definitions:

Margin of error

A measure indicating the range of values within which the true value is likely to fall, with a certain level of confidence.

Confidence interval

An estimated range of values which is likely to include an unknown population parameter, based on the given data.

SAT scores

SAT scores are standardized test scores used for college admissions in the United States, assessing mathematical, verbal, and writing skills.

Confidence interval

An assortment of values, from sample-based statistics, that is speculated to contain the unseen population parameter value.