If the Reserve Ratio Is 100-Percent,then a New Deposit of $1000

question 51

Multiple Choice

If the reserve ratio is 100-percent,then a new deposit of $1000 into a bank account

• A)eventually increases the money supply by $1000.
• B)leaves the size of the money supply unchanged.
• C)eventually decreases the size of the money supply by $1000.
• D)eventually increases the money supply by $2000.

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Definitions:

Significance Level

The probability of rejecting the null hypothesis in a statistical test when it is actually true, usually set before the experiment.

Seat Belts

Devices aimed at protecting vehicle passengers from injurious motions that might occur in the event of an accident or abrupt halt.

Chi-Squared Test

A statistical test used to determine if there's a significant difference between the observed frequencies and the expected frequencies in one or more categories.

Nominal Variables

Categorical variables that represent qualitative data with no intrinsic ordering or ranking between the categories.