An Economist Is Interested to See How Consumption for an Economy

question 23

Multiple Choice

An economist is interested to see how consumption for an economy (in $ billions) is influenced
By gross domestic product ($ billions) and aggregate price (consumer price index) .Annual data
From 30 years were collected.Which of the following would be the most appropriate analysis to
Perform?

• A) Simple linear regression.
• B) Multiple linear regression.
• C) Exponential smoothing.
• D) Autoregressive modeling for trend fitting and forecasting

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Definitions:

Venture

A business undertaking that involves risk, often utilized in the context of new or speculative enterprises.

Shareholder Return

The total earnings a shareholder receives from an investment, including dividends and capital gains.

Return On Assets

A financial ratio that measures how efficiently a company uses its assets to generate profit.

Nonoperating Investments

Investments made by a company that are not related to its primary business operations, often including stocks, bonds, or real estate.