If There Is a Causal Relationship Between Two Variables X

question 69

Multiple Choice

If there is a causal relationship between two variables X and Y,

• A)both should be used as explanatory variables.
• B)then the causal variable should be used as the explanatory variable.
• C)then they must be positively correlated.
• D)one of them can be omitted from the analysis.

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Definitions:

Nondurable Goods

Goods that are expected to last or be used for less than one year.

Consumption of Services

The action of using services such as healthcare, education, and utilities, which contributes to an individual's standard of living.

Consumer Spending

The total amount of money spent by households and individuals in an economy on goods and services, excluding savings and investments, directly influencing economic growth.

John Maynard Keynes

An economist hailing from Britain, whose groundbreaking ideas redefined the scope of macroeconomics and governmental policy initiatives.