The correlation coefficient
A) lies between zero and one.
B) is a measure of linear association.
C) is close to one if X causes Y.
D) takes on a high value if you have a strong nonlinear relationship.
Answer: B
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During a recession, the
A) cyclical rate of unemployment is positive. B) natural rate of unemployment has fallen. C) cyclical rate of unemployment is zero. D) cyclical rate of unemployment is negative.
An asset category that caries the highest interest rate is
A) checkable deposit accounts. B) loans. C) cash in the bank vault. D) savings deposits.
Environmental harm declines with rising income per person when
A. with rise in income the increase in demand for better environment quality is larger than any adverse effects from rising production scale. B. the adverse effect of any increase in nominal Gross Domestic Product (GDP) dominates any modest improvements from better production techniques. C. the government imposes restrictions on the import of environment-friendly technologies from abroad. D. the consumption of environment-friendly goods decline with an increase in income.
When a U.S. importer buys 100,000 pairs of pants from a Hong Kong company, this transaction will represent a:
A. Credit on the current account of the U.S. balance of payments B. Debit on the current account of the U.S. balance of payments C. Credit on the financial account of the U.S. balance of payments D. Debit on the financial account of the U.S. balance of payments