You Notice That When Interest Rates Increases, New Residential Housing

question 144

Multiple Choice

You notice that when interest rates increases, new residential housing prices tend to decrease. This observation indicates that

• A) there must be false causality between interest rates and housing prices.
• B) higher interest rates must cause low housing prices.
• C) a scatter diagram between interest rates and housing prices will show a negative relationship.
• D) a scatter diagram between interest rates and housing prices will show a direct relationship.

---

Definitions:

Central Tendency

A single number or value that describes the typical or central score among a set of scores.

Frequency Distribution

A mathematical function that shows the number of occurrences of each value of a variable, often represented in a table or graph.

Median

A measure of central tendency; the middle score in a distribution of scores that divides the distribution in half.

Mean

A measure of central tendency, obtained by summing scores and then dividing the sum by the number of scores.