If the M2 Multiplier Is Currently 8 and People Decide

question 43

Multiple Choice

If the M2 multiplier is currently 8 and people decide to increase the ratio of currency they hold relative to the amount of transactions accounts they hold, the M2 multiplier will

• A)not change.
• B)increase substantially.
• C)decrease.
• D)increase slightly.

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Definitions:

Hypothesis Testing

A method in statistics to decide whether to accept or reject a hypothesis based on sample data, to determine the likelihood that a parameter related to the population is true.

Research Hypothesis

A specific, testable prediction about the expected outcome of a study.

Probability

A measure of the likelihood that an event will occur, expressed as a number between 0 and 1.

Samples

Subsets of a population selected for measurement, observation, or questioning to make statistical inferences about the whole population.