Nominal Data Requires That the Categories Be_____________ And__________

question 14

Short Answer

Nominal data requires that the categories be_____________ and__________.

---

Definitions:

Normal Goods

Goods for which demand increases as consumer income rises, and decreases when consumer income falls.

Interest Rate

The cost of borrowing money or the return on investment, expressed as a percentage, charged by lenders to borrowers for the use of their money.

Substitution Effect

The change in demand for a good or service caused by a change in its price, making consumers replace it with a cheaper alternative.

Income Effect

A change in consumption patterns resulting from a change in real income due to variations in prices, other factors remaining constant.