Evidence of a Positive Relationship Between Variables Does Not Provide

question 64

True/False

Evidence of a positive relationship between variables does not provide evidence that the variables should be thought of as causally related.

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Definitions:

Net Investment

The sum of money used to purchase new capital assets, subtracting the depreciation from current capital assets.

Depreciation

The reduction in the value of an asset over time, due in particular to wear and tear.

Expenditures Approach

A method of calculating GDP that totals consumption, investment, government spending, and net exports.

GDP

Gross Domestic Product, a measure of the economic performance of a country, calculating the total value of all goods and services produced over a specific time period.