When Considering the Possibility and Direction of Causality Between Quality

question 59

Multiple Choice

When considering the possibility and direction of causality between quality of parenting and peer acceptance, the text states that the MOST likely possibility is that:

• A)the causal links are bidirectional.
• B)there is a third variable, such as children's temperament, that causes both parenting behaviors and peer acceptance.
• C)quality of parenting causes peer acceptance.
• D)there is no causal relationship between quality of parenting and peer acceptance.

---

Definitions:

Operating Leverage

A measure of how revenue growth translates into growth in operating income due to fixed costs in a company's business model.

Tax Rate

The percentage at which an individual or corporation is taxed by the government on their income or profits.

Cost of Debt

The effective rate that a company pays on its current debt, which can be measured in terms of either the before-tax or after-tax cost.

Personal Tax Rate

The percentage of an individual's income that is paid to the government in taxes.