The Residual Is the Difference Between the ______ and the ________

question 42

Multiple Choice

The residual is the difference between the ______ and the ________.

• A) predicted value of y ; observed value of y
• B) observed value of y ; predicted value of y
• C) predicted value of x ; observed value of x
• D) observed value of x ; predicted value of y

---

Definitions:

Discretionary

Pertaining to funds or spending that is subject to decision or choice by a party or authority.

Balanced Budget Amendment

A proposed federal constitutional rule requiring that the government not spend more than its income in a fiscal year.

Crowding-out Effect

A situation where increased government spending leads to reduced investment in the private sector.

Government Borrowing

The process by which governments finance their expenditures by issuing debt instruments, such as bonds, to the public or borrowing from financial institutions.