The Correlation Value for Pearson's R Does Not Reach 1

question 3

True/False

The correlation value for Pearson's r does not reach 1.0 (unity)but will after you square it.

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Definitions:

Excess Reserves

The amount of reserves held by banks over and above the legally mandated requirement.

Destroyed Money

Money that has been taken out of circulation, either physically by damage or dematerialization, or digitally by central authorities to control the money supply.

Liquidity Trap

A scenario where low interest rates and high savings rates make it difficult for monetary policy to boost economic growth.

Speculative Demand

The demand for goods, services, or assets based not on their fundamental value but on the expectation that their price will increase in the future.