Which of the Following Is True of a Beta Coefficient

question 31

Multiple Choice

Which of the following is True of a beta coefficient?

• A) The beta coefficient ranges from 1.00 to 3.00 and is a positive correlation coefficient.
• B) The beta coefficient is an estimated correlation coefficient.
• C) The beta coefficient is an F-ratio that has been recalculated to have a mean of 1 and a standard deviation of 0.
• D) A positive beta means as the size of an independent variable decreases, then the size of the dependent variable increases.
• E) A beta coefficient shows the change in the dependent variable for each unit change in the independent variable.

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Definitions:

Aggregate-Demand Curve

A graph showing the relationship between the total quantity of goods and services demanded across all sectors of the economy and the price level.

Monetary Policy

Actions by a central bank or other regulatory authority to influence a nation's money supply and interest rates to achieve macroeconomic objectives such as controlling inflation, consumption, growth, and liquidity.

Fiscal Policy

Government policies related to taxation and public spending with the aim of influencing economic conditions, including growth, inflation, and unemployment rates.

Legislation

Laws and statutes that are enacted by a legislative body through its legislative process.