If the Absolute Value of the Correlation Is Very Close

question 10

Multiple Choice

If the absolute value of the correlation is very close to 0,the error in prediction will be ______.

• A)high
• B)low
• C)very low
• D)0

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Definitions:

Classical Economists

Economists from the 18th and 19th centuries who believed in free markets, limited government intervention, and self-regulating economies.

Market Forces

The economic factors affecting the price, demand, and availability of goods and services in a market economy, primarily supply and demand.

Full Employment

A situation in which all available labor resources are being used in the most economically efficient way, typically characterized by the absence of cyclical unemployment.

Keynes

Refers to the economic theories and policies advocated by John Maynard Keynes, which emphasize government intervention to manage economic cycles and stimulate economy-wide demand.