Which of the following statements is true?
A) Correlation can only arise when causation is not present.
B) Causation can only arise when correlation is not present.
C) Correlation arises when there is causation and can also arise even when there is no causation.
D) Causation arises when there is correlation between two variables, and can also arise even when there is no correlation.
C
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The additional benefit of increasing some activity by one unit is called the
A) marginal benefit. B) opportunity cost. C) total benefit. D) scarcity. E) unit cost/benefit.
Which of the following is most likely to increase exports?
a. a reduction in domestic political instability b. ending investment tax credits which subsidize domestic investment c. a reduction in the size of the government's budget surplus d. None of the above will increase exports.
Which of the following is a discretionary fiscal policy action?
A. a progressive tax system that leads to an increase in income tax revenues from the rich B. an increase in Supplemental Security Income payments when more people become eligible for the benefits C. an increase in the amount of unemployment compensation because more people become unemployed D. a deliberate tax increase when the economy experiences high inflation
If the dollar appreciates, how will aggregate demand in the United States be affected?
A) Aggregate demand will shift to the right as exports increase. B) Aggregate demand will shift to the right as imports increase. C) Aggregate demand will shift to the left as imports increase. D) Aggregate demand will shift to the left as exports increase.