If Changing One Variable Seems to Lead to a Change

question 124

Multiple Choice

If changing one variable seems to lead to a change in another variable, this shows ________ but does not necessarily prove ________.

• A) a paradigm shift; causation
• B) correlation; causation
• C) causation; correlation
• D) applied research; a paradigm shift

---

Definitions:

Capital Structure

The mixture of debt and equity financing a company uses to fund its operations and growth.

Expected EPS

Estimated Earnings Per Share, forecasting a company's profitability on a per share basis.

Share Price

The price of a single share of a company's stock.

Interest Rate

The amount charged by a lender to a borrower for the use of assets, expressed as a percentage of the principal, usually on an annual basis.