Suppose an Economy Has a GDP of $10 Trillion,and That

question 32

Multiple Choice

Suppose an economy has a GDP of $10 trillion,and that its national saving rate is 20%.If investment is 25% of GDP,the value of net exports is ________.

• A)negative $500 billion
• B)$4.5 trillion
• C)negative $250 billion
• D)$2 trillion
• E)none of the above

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Definitions:

Alternative Hypothesis

The hypothesis concluded to be true if the null hypothesis is rejected.

Population Parameter

A numerical value used as a summary measure for a population (e.g., the population mean, m, the population variance, s2, and the population standard deviation, s).

Type I Error

The error of rejecting H0 when it is true.

Type II Error

The error of accepting H0 when it is false.