A Variable That Cannot Be Measured in Terms of How

question 102

Multiple Choice

A variable that cannot be measured in terms of how much or how many but instead is assigned values to represent categories is called

• A)an interaction
• B)a constant variable
• C)a category variable
• D)a qualitative variable

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Definitions:

Fixed Exchange Rate

A system where the value of a currency is pegged at a set value against another currency or a basket of currencies.

Floating Exchange Rate

A currency's value that is determined by the foreign exchange market depending on supply and demand relative to other currencies, rather than a fixed value set by a government.

Purchasing Power Parity

An economic theory that compares different countries' currencies through a "basket of goods" approach, aiming to determine the adjustments needed to make the exchange rates of two currencies equal.

Basket of Goods

Is a selected set of products and services whose prices are tracked to measure inflation or cost of living changes in an economy over time.