Which of the Following Is an Appropriate Policy for the Fed

question 123

Multiple Choice

Which of the following is an appropriate policy for the Fed to pursue if it wants to increase the money supply?

• A)raise the reserve requirement
• B)raise the discount rate
• C)buy U.S.Treasury bills
• D)lower taxes

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Definitions:

Wilcoxon Signed Rank Test

The Wilcoxon signed rank test is a nonparametric statistical test used to compare the median of two related samples to determine if there are significant differences between them.

P-Value

The probability of observing a test statistic as extreme as, or more extreme than, the observed value under the assumption that the null hypothesis is true.

Kruskal-Wallis Test

A nonparametric statistical test that assesses whether there are statistically significant differences between two or more groups of an independent variable on a continuous or ordinal dependent variable.

Kruskal-Wallis H Test

A nonparametric statistical test designed to assess whether there's a significant difference between two or more groups related to an independent variable, with respect to a continuous or ordinal dependent variable.