What Can We Learn from Looking at the Changes in the Federal

question 10

Essay

What can we learn from looking at the changes in the Federal Reserve's balance sheet between March 2007 and May 2013?

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Definitions:

Coefficient of Correlation

A statistical measure that calculates the strength and direction of the relationship between two variables.

Linear Relationship

A type of correlation where there is a constant rate of change between two variables.

Dependent Variable

A variable in an experiment or study whose changes are determined by the presence or manipulation of one or more independent variables.

Independent Variable

A variable in statistical analysis that is manipulated or categorized to observe its effect on a dependent variable.