The board of a national central bank is meeting to decide if it should increase

Question

The board of a national central bank is meeting to decide if it should increase interest rates in order to slow economic growth. State the null and alternative hypotheses regarding economic growth that the board would formulate to guide its decision. What are the null and alternative hypotheses?

A. H0: Increase interest rates in order to slow economic growth. H1:Reduce interest rates in order to slow economic growth.

B. H0: No change in interest rates is warranted. H1: Change interest rates in order to slow economic growth.

C. H0: Reduce interest rates in order to slow economic growth. H1: Increase interest rates in order to slow economic growth.

D. H0: No change in interest rates is warranted. H1: Increase interest rates in order to slow economic growth.

Explanation / Answer

Option-D)

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