Other Things the Same an Increase in the Interest Rate

question 85

Multiple Choice

Other things the same an increase in the interest rate

• A)increases national saving,this is shown by moving along the demand for loanable funds curve.
• B)increases national saving,this is shown by moving along the supply of loanable funds curve.
• C)decreases national saving,this is shown by moving along the demand for loanable funds curve.
• D)decreases national saving,this is shown by moving along the supply of loanable funds curve.

Understand the basic characteristics of perfect competition.

Identify how prices are set in a perfectly competitive industry.

Calculate profit per unit and understand how it is maximized.

Distinguish between industry and firm demand curves in perfect competition.

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Definitions:

Two-Tailed Test

A statistical test of hypothesis where the area of interest spans both tails of the distribution, allowing for investigation of deviations in two opposite directions.

Sample Proportions

The fraction or percentage of observations in a sample that fall into one particular category or class.

Standard Error

The standard deviation of the sampling distribution of a statistic, commonly the mean, indicating the variation of a sample statistic from the population parameter.

Lower Tailed Test

A statistical hypothesis test where the critical area of a distribution is in its lower tail, used to determine if a sample mean is significantly lower than a known or assumed population mean.