Adding a Time Trend Can Make an Explanatory Variable More

question 10

Multiple Choice

Adding a time trend can make an explanatory variable more significant if:

• A)the dependent and independent variables have similar kinds of trends, but movement in the independent variable about its trend line causes movement in the dependent variable away from its trend line.
• B)the dependent and independent variables have similar kinds of trends and movement in the independent variable about its trend line causes movement in the dependent variable towards its trend line.
• C)the dependent and independent variables have different kinds of trends and movement in the independent variable about its trend line causes movement in the dependent variable towards its trend line.
• D)the dependent and independent variables have different kinds of trends, but movement in the independent variable about its trend line causes movement in the dependent variable away from its trend line.

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