Why Are Latent Variables Better Suited Than Observed Variables to Assess

question 12

Multiple Choice

Why are latent variables better suited than observed variables to assess constructs?

• A) Latent variables are based on several measures of different variables
• B) Latent variables represent variables that partic ipants are not aware of during the experiment
• C) Latent variables are more restricted and easier to control than observed variables
• D) Latent variables are based on different measures of the same variable

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Definitions:

Price Level

An index or measurement that reflects the average prices of goods and services in an economy at a given time.

Value of Money

The purchasing power of money, which can be affected by factors like inflation and changes in the interest rate.

Vertical Axis

In a graph or chart, the vertical line that typically represents the dependent variable or the range of values measured.

Money Supply Curve

A graphical representation showing the relationship between the quantity of money in the economy and the interest rate, typically illustrating how changes in the money supply affect interest rates.