Which of the Following Could Cause a Recession

question 8

Multiple Choice

Which of the following could cause a recession?

• A) An increase in consumption
• B) An increase in saving
• C) An increase in investment
• D) An increase in government purchases
• E) An increase in exports

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Definitions:

Expected Value

A calculated average or mean of all possible outcomes of a random variable, considering the probabilities of each outcome.

Binomial Random Variable

A type of discrete random variable that arises in situations where an experiment or process is repeated a fixed number of times, with each trial having two possible outcomes (success or failure) and a constant probability of success.

Binomial Probability Distribution

A probability distribution that summarizes the likelihood that a variable will take one of two independent values under a given set of parameters or conditions.

Binomial Problem

A statistical question or experiment that has exactly two possible outcomes, 'success' or 'failure', and where the probability of success is the same each time the experiment is conducted.