When We Use Ordinary Least Squares to Determine the Relationship

question 9

Multiple Choice

When we use ordinary least squares to determine the relationship between changes in consumption and changes in both current and lagged income,we find that

• A)only current income influences current consumption.
• B)current income has no impact on current consumption.
• C)consumption is not affected by income in any quarter.
• D)current income, last quarter's income, and income two quarter's ago all have the same impact on current consumption.
• E) current income has a greater impact on consumption than income lagged one quarter.

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Definitions:

Psychokinesis

The purported ability to move or manipulate objects with the mind without physical interaction.

Synesthesia

A brain disorder where activating one sense or cognitive route automatically causes unintended experiences in another sense or cognitive route.

Kinesthesia

The ability to perceive the position, weight, or motion of muscles, tendons, and joints within the body.

Sensory Interaction

The principle that one sense may influence another, as when the smell of food influences its taste.