A Problem with Cross-Sectional Data Is That

question 95

Multiple Choice

A problem with cross-sectional data is that:

• A) The data cannot be collected on more than one variable
• B) Independent variables cannot be differentiated from dependent variables because there is no theory
• C) It is harder to establish cause and effect, because the data are not collected over time
• D) There is differential attrition

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Definitions:

Fiscal Policy

Government policies related to taxation and spending that aim to influence economic conditions.

Monetary Policy

The set of actions by a central bank or monetary authority to control the supply of money and interest rates in its economy.

Monetary Policy

The process by which the central bank or monetary authority of a country manages the supply of money in order to achieve specific goals such as controlling inflation, maintaining employment, and stabilizing the currency.

Interest Rates

The cost of borrowing money or the return on investment for savings, typically expressed as a percentage.