The Classical Model Indicates That at the Equilibrium Interest Rate

question 39

Multiple Choice

The classical model indicates that at the equilibrium interest rate, saving is

• A) equal to investment.
• B) greater than investment.
• C) unnecessary for investment.
• D) less than investment.

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Definitions:

Sampling Distribution

The chance distribution for a statistic identified from a random sample.

Z-scores

A standard score indicating how many standard deviations an element is from the mean.

Normal Curve

A bell-shaped curve that represents the distribution of a set of data where most occurrences take place around the mean, tapering off symmetrically towards the extremes.

T-statistic

A type of statistic used in hypothesis testing when the sample size is small and the population variance is unknown, it is based on the Student's t-distribution.