If All the Points in a Scatter Diagram Lie on the Least

question 76

Multiple Choice

If all the points in a scatter diagram lie on the least squares regression line,then the coefficient of correlation:

• A) must be 1.0.
• B) must be -1.0.
• C) must be either 1.0 or -1.0.
• D) must be 0.

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Definitions:

Crowding Out

The phenomenon where increased government spending leads to a reduction in private sector investment or spending due to higher interest rates or other factors.

Budget Deficit

A budget deficit occurs when a government's expenditures exceed its revenues during a specific period, leading to the need for borrowing or using saved reserves.

Loanable Funds

The market where savers supply funds to borrowers, influencing interest rates and investment activities.

Crowding Out

A situation in economics where increased public sector spending reduces or eliminates private sector spending.