Suppose There Is a Correlation of +0

question 49

True/False

Suppose there is a correlation of +0.87 between the length of time a person is in prison and the amount of aggression the person displays on a psychological inventory. This means that spending a longer amount of time in prison causes people to become more aggressive.

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Definitions:

Required Reserve Ratio

The fraction of deposits that banks are mandated by regulation to hold in reserve and not lend out.

Excess Reserves

The banks' reserves over and above the required minimum that they choose to hold rather than loan out.

Depositors

People or organizations that deposit their funds into a bank to secure them and gain interest as time passes.

Borrowers

Individuals or entities that take funds from a lender under the agreement to pay back the principal amount along with interest.