The Larger the Correlation Coefficient, ________

question 22

Multiple Choice

The larger the correlation coefficient, ________.

• A) the greater the practical significance
• B) the smaller its practical significance
• C) the larger its range
• D) the smaller its statistical significance

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Definitions:

Aggregate Demand

The grand sum of demands for all products and services within an economy, fixed at a standard price range during a certain time period.

Expected Inflation Rate

The expected inflation rate is the anticipated annual increase in the average price level of goods and services within an economy.

Actual Inflation Rate

The rate at which the general level of prices for goods and services is rising, and subsequently purchasing power is falling, measured over a particular period.

Short-run Phillips Curve

A graphical representation that shows the inverse relationship between the rate of inflation and the rate of unemployment in an economy over a short period.