Which One of the Following Statements Is True

question 426

Multiple Choice

Which one of the following statements is true?

• A) In the classical model, the supply of saving is determined by the rate of interest.
• B) In the classical model, the supply of saving is determined by the level of income.
• C) In the Keynesian model, the supply of saving is determined by the rate of interest.
• D) In the Keynesian model, the supply of saving is determined by the level of investment.

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Definitions:

Degrees of Freedom

The quantity of distinct values or amounts that a statistical distribution can accept.

Population Variance

A measure of the spread of a population’s values, indicating how much the individuals within the population differ from the population mean.

Chi-Squared Distributed

Referring to a statistical distribution that is used to describe the distribution of the sum of squares of a set of variables, often used in hypothesis testing.

T-Distribution

A statistical distribution that occurs when calculating the average of a population with a normal distribution, under conditions where the sample size is small and the population's variance is not known.