Contractionary Monetary Policy Is A(n)________ in Interest Rates with the Intention

question 120

Multiple Choice

Contractionary monetary policy is a(n) ________ in interest rates with the intention of reducing a(n) ________ gap.

• A) reduction;expansionary
• B) reduction;recessionary
• C) reduction;inflationary
• D) increase;expansionary
• E) increase;recessionary

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Definitions:

Alternative Hypothesis

In hypothesis testing, the hypothesis that contradicts the null hypothesis, suggesting some effect or difference exists.

Non-directional

Pertains to hypotheses or tests that do not specify the direction of the expected differences or relationships.

Null Hypothesis

A hypothesis positing no effect or no difference; it serves as the default assumption to be tested against the alternative hypothesis.

Directional Hypothesis

A hypothesis that specifies the expected direction of the relationship between variables, indicating an increase or decrease.