When Keynesians Argue That "Correlation Does Not Necessarily Imply Causation

question 10

Multiple Choice

When Keynesians argue that "correlation does not necessarily imply causation," they are probably criticizing

• A)structural-model evidence.
• B)reduced-form evidence.
• C)indirect-model evidence.
• D)black-box evidence.

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Definitions:

Available-for-Sale Securities

Financial assets that are not classified as held-to-maturity or trading securities, and can be sold in the short-term to meet liquidity needs.

Security Investments

Investments in tradable financial assets such as stocks, bonds, or other securities aiming for capital appreciation or income generation.

Fair Value

An estimation of the price at which an asset would change hands between willing parties, neither under compulsion to buy nor sell, and both having reasonable knowledge of relevant facts.

Unrealized Loss-Income

Financial losses or gains that have occurred on paper due to changes in asset values but are not realized until the asset is sold.