Two Variables, a and B, Have a Strong Linear Correlation

question 22

Multiple Choice

Two variables, A and B, have a strong linear correlation. What is the direction of causality?

• A)A causes B
• B)B causes A
• C)Some third variable causes both A and B
• D)Any of the above are possible

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Definitions:

Unemployment

The state of being jobless and actively seeking employment.

Inflation

The pace at which the universal cost levels of goods and services elevate, shrinking the value of money to buy.

Money Supply

The money supply is the total amount of monetary assets available in an economy at a specific time, including cash, coins, and balances held in checking and savings accounts.

Unemployment

A situation where individuals who are capable of working and are actively seeking employment are unable to find a job.