The General Answer to the Question of Choosing the Scale

question 14

Multiple Choice

The general answer to the question of choosing the scale of the variables is

• A)dependent on you whim.
• B)to make the regression results easy to read and to interpret.
• C)to ensure that the regression coefficients always lie between -1 and 1.
• D)irrelevant because regardless of the scale of the variable, the regression coefficient is unaffected.

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Definitions:

Budget Deficits

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1930s

refers to the decade known for the Great Depression, a severe worldwide economic downturn that lasted from 1929 to 1939.

Economic Behaviorists

Scholars or researchers who study how psychological and emotional factors affect the economic decisions of individuals or institutions.

Supply Side Economists

Economists who believe in the effectiveness of policies that focus on boosting output and economic growth by increasing the supply of goods and services, often through tax cuts and deregulation.