The Rate of Time Preference Is Positive

question 48

Multiple Choice

The rate of time preference is positive

• A)only when interest rates are positive
• B)because interest rates are positive
• C)only when people save
• D)because people save
• E)because people prefer goods now to the same goods later

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Definitions:

Alternative Hypothesis

A statement in hypothesis testing that proposes a significant difference or effect, contradicting the null hypothesis.

Statistical Evidence

Data and information gathered from statistical analyses that support or reject hypotheses, used to make conclusions or inferences about the characteristics of populations.

P-Value

The probability of obtaining test results at least as extreme as the results observed, assuming that the null hypothesis is correct.

Alpha (α)

In hypothesis testing, the threshold probability for incorrectly rejecting the null hypothesis, representing the level of significance of the test.