If an Independent Variable Is Added to a Multiple Regression

question 85

Multiple Choice

If an independent variable is added to a multiple regression model, the R² value​

• A) ​becomes larger or smaller depending on the statistical significance of the variable.
• B) ​becomes larger even if the variable added is not statistically significant.
• C) ​might or might not become larger even if the variable added is statistically significant.
• D) is not affected by the variable added even if it is statistically significant.

Analyze the effects of currency valuation changes on the current account balance.

Identify the significant factors contributing to capital and current account balances.

Understand the historical shift of the United States from a creditor to a debtor nation.

Comprehend the concepts of balance of payments, balance of trade, and their components.

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Definitions:

Positive Utility

Positive utility refers to the benefit or satisfaction obtained from consuming a good or service, contributing to the overall well-being of the consumer.

Maximizing Utility

The economic principle aiming to achieve the highest level of satisfaction possible with available resources.

Price

The cost at which something is being sold, reflecting the value that consumers or purchasers assign to a good or service.

Utility

An economic term referring to the total satisfaction received from consuming a good or service.