In the Long Run,a 1% Increase in Real GDP Tends

question 41

Multiple Choice

In the long run,a 1% increase in real GDP tends to

• A)cause a 1% increase in the demand for money.
• B)cause a less than 1% increase in the demand for money.
• C)cause a greater than 1% increase in the demand for money.
• D)have virtually no effect on the demand for money,because the interest rate is the main determinant of the demand for money.

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Definitions:

Nonparametric Methods

Statistical methods that are not based on parameterized families of probability distributions, used when data doesn't fit the assumptions of parametric methods.

Functioning Time

The period which a system or device is operational and performs its intended function without failure.

Kruskal-Wallis Test

A non-parametric test that is utilized to ascertain if statistically meaningful differences exist among two or more categories of an independent variable concerning a continuous or ordinal dependent variable.

Significance Level

The probability of rejecting the null hypothesis in a statistical test when it is actually true, typically denoted by alpha.