A "Flight to Quality" in Global Asset Markets in September

question 36

Multiple Choice

A "flight to quality" in global asset markets in September and October 2008 caused an increase in the demand for ________.

• A)emerging-market equities
• B)luxury automobiles
• C)dollar assets
• D)blue-chip stocks

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Definitions:

Multiple Regression Model

A statistical technique that uses several explanatory variables to predict the outcome of a response variable.

Dependent Variable

A variable whose value depends on that of another, used in experiments to test the effects of changes in an independent variable.

Regression Analysis

A statistical method for estimating the relationships among variables, often used for forecasting and predicting outcomes.

High-low

A technique used in accounting and finance to estimate fixed and variable costs by analyzing the highest and lowest levels of activity.