When the Lines Representing the Effects of Two Variables Cross

question 19

Multiple Choice

When the lines representing the effects of two variables cross on a graph,you have ______.

• A)an interaction effect
• B)no interaction effect
• C)possibly an interaction effect
• D)an effect that cannot be determined

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Definitions:

PQ Falls

This term is not sufficiently defined to provide a clear and specific definition without additional context; it could potentially relate to a concept within economics, involving a decrease in quantity (Q) and price (P).

PQ Rises

Indicates an increase in the product of price (P) and quantity (Q), suggesting growth in total revenue or output.

Rational Expectations Theorists

Economists who believe that individuals make predictions about the future based on all available information, thus affecting their economic decisions.

Downwardly Flexible

Refers to the ability of wages or prices to decrease in response to market conditions.