In Classification, Which of the Following Would Be Considered as a Categorical

question 29

Multiple Choice

In classification, which of the following would be considered as a categorical variable of interest for a credit approval decision for a requester?

• A) age of the requester
• B) income of the requester
• C) revolving balance of the requester
• D) reject or accept credit approval

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Definitions:

Aggregate Spending

The total spending in an economy, including consumption, investment, government expenditures, and net exports.

Discretionary Fiscal Policy

The deliberate manipulation of government purchases, taxation, and transfer payments to promote macroeconomic goals, such as full employment, price stability, and economic growth

Taxation

The practice by which a government imposes financial charges on its citizens or residents to fund public spending and various public expenditures.

Government Spending

The total of all government expenses, including salaries, defense, education, and public services.