-Refer to Figure 14-2

question 152

Multiple Choice

-Refer to Figure 14-2.If the interest rate is 4 percent,

• A) there is an excess demand for money equal to $100 billion
• B) there is an excess demand for money
• C) there is an excess demand for money equal to $400 billion
• D) the Fed will decrease the money supply
• E) the interest rate will tend to rise

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Definitions:

Establishing Evidence

The process of gathering and presenting data or facts to support or prove a point, hypothesis, or legal case.

Construct Validity

The extent to which a test or instrument accurately measures the theoretical construct or concept it is intended to assess.

Assessing Methods

Various techniques or procedures used to evaluate or measure the knowledge, skills, abilities, or characteristics of individuals or groups.

Validity Coefficient

Numeric value representative of the relative strength of an assessment’s validity.