When Interest Rates Fall

question 106

Multiple Choice

When interest rates fall

• A)firms want to borrow more for new plants and equipment and households want to borrow more for homebuilding.
• B)firms want to borrow more for new plants and equipment and households want to borrow less for homebuilding.
• C)firms want to borrow less for new plants and equipment and households want to borrow more for homebuilding.
• D)firms want to borrow less for new plants and equipment and households want to borrow less for homebuilding.

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Definitions:

Assumption

A basic condition that is accepted as true without proof in order to proceed with a calculation, argument, or analysis.

Non-directional Alternative Hypothesis

An alternative hypothesis that does not specify the direction of the expected difference or relationship, only that one exists.

Null Hypothesis

A hypothesis that states there is no statistical significance between two variables being studied.

μ ≠ 5

A statistical notation indicating the population mean (μ) is not equal to 5.