Suppose There Were a Large Decline in Net Exports

question 35

Multiple Choice

Suppose there were a large decline in net exports.If the Fed wanted to stabilize output,it could

• A)buy bonds to raise interest rates.
• B)buy bonds to lower interest rates.
• C)sell bonds to raise interest rates.
• D)sell bonds to lower interest rates.

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Definitions:

Wilcoxon Rank Sum Test

A nonparametric statistical test used to compare two independent samples, assessing whether their populations have the same median.

Rank Order

A method of organizing items in a list based on their value or importance, typically from highest to lowest.

Tie

A situation in competitive scenarios where two or more participants achieve identical results and a common ranking is shared.

Wilcoxon Rank Sum Test

A nonparametric test that compares two independent samples to assess whether their population mean ranks differ.