The Latin Phrase Ceteris Paribus Means That When a Relationship

question 20

Multiple Choice

The Latin phrase ceteris paribus means that when a relationship between two variables is being studied:

• A) all other variables are held fixed.
• B) both are treated as unpredictable.
• C) we recognize that some factors are unknown.
• D) neither of those two variables is allowed to change.

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Definitions:

Unfavorable Balance

A situation where a financial balance, such as trade balance or budget, is negative, indicating more outflows than inflows.

Importer

An individual or company that buys goods or services from another country for the purpose of selling them within their own country.

Society of Worldwide Interbank Financial Telecommunications

An international messaging network that financial institutions use for securely transmitting information and instructions related to financial transactions.

International Payment Transfers

Financial transactions that involve the sending of money across international borders.