A Proposition About the Relationship Between Two Variables That Can

question 119

Multiple Choice

A proposition about the relationship between two variables that can be proven false is called:

• A) a hypothesis.
• B) a law.
• C) a theory.
• D) the scientific method.

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Definitions:

Economic Expansion

A phase of the business cycle where the economy grows and increases in activity, marked by rising GDP, employment, and income.

EBIT

Earnings Before Interest and Taxes; a measure of a firm's profitability that includes all expenses except interest and income tax expenses.

Unlevered Firm

A company that operates without any debt financing, relying solely on equity for its financing needs.

Levered

Pertaining to the use of borrowed capital or debt to increase the potential return of an investment.