_____ Is the Mistaken Belief That When Two Variables Correlate

question 65

Multiple Choice

_____ is the mistaken belief that when two variables correlate strongly with each other, one variable made the other variable change.

• A) Confirmation bias
• B) Correlation-causation fallacy
• C) Authority fallacy
• D) Black-or-white fallacy

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Definitions:

Interest Rate Futures

Financial derivatives contracts that obligate the buyer to purchase an asset (like Treasury bills or bonds) at a future date at a predetermined interest rate.

Spot Market

A financial market in which commodities or financial instruments are traded for immediate delivery.

Treasury Notes Futures

Financial contracts obligating the buyer to purchase and the seller to sell U.S. Treasury notes at a predetermined future date and price.

Interest Rates

The cost of borrowing or the return on savings, often set by a central bank, influencing economic activity.