One Reason for Computing the Logarithms (Ln), or Changes in Logarithms

question 15

Multiple Choice

One reason for computing the logarithms (ln) , or changes in logarithms, of economic time series is that

• A)numbers often get very large.
• B)economic variables are hardly ever negative.
• C)they often exhibit growth that is approximately exponential.
• D)natural logarithms are easier to work with than base 10 logarithms.

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Definitions:

Larynx

The vocal apparatus situated in the neck area, tasked with producing sounds, facilitating respiration, and safeguarding the windpipe from the inhalation of food.

Trachea

The windpipe, a tube that connects the larynx to the bronchi of the lungs, providing air passage.

Pharynx

The muscular tube that connects the mouth and nasal cavity to the larynx and esophagus, serving both the respiratory and digestive systems.

Primary Bronchi

The major air passages that branch off from the trachea and enter the lungs to facilitate breathing.