When Two Variables, a and B, Are Strongly Correlated, It

question 22

Multiple Choice

When two variables, A and B, are strongly correlated, it means that

• A) A has caused B
• B) B has caused A
• C) some third variable has caused both A and B to occur together
• D) none of these

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Definitions:

Merchandise Trade Balance

The difference between a country's exports and imports of physical goods, indicating a trade surplus or deficit.

Refrigerators

Appliances used for keeping food and drinks cold, employing the principles of thermodynamics to transfer heat from the inside to the outside environment.

Shipping

The process of transporting goods and merchandise by land, air, or sea.

Balance of Payments

A record of all transactions made between entities in one country and the rest of the world over a specified period of time.