What Is the "Reverse Causality" Problem in Determining Cause and Effect

question 154

Multiple Choice

What is the "reverse causality" problem in determining cause and effect?

• A)It is a problem that occurs when one concludes that a change in variable X caused a change in variable Y when in actual fact,it is a change in variable Z that caused a change in variable Y.
• B)It is a problem that occurs when one observes that a change in variable X caused a change in variable Y which caused a change in variable Z and concludes that a change in variable X caused a change in variable Z.
• C)It is a problem that occurs when one concludes that a change in variable X caused a change in variable Y when in actual fact,it is a change in variable Y that caused a change in variable X.
• D)It is a problem that arises when two variables are inter-connected so that a change in variable X causes a change in variable Y,and a change in variable Y causes a change in variable X.

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Definitions:

Shares Outstanding

The total number of shares of a corporation's stock that are currently owned by all its shareholders, including share blocks held by institutional investors and restricted shares.

Buy Back

An agreement where a seller commits to repurchase the product from the buyer after a specified period or under certain conditions.

Shares Outstanding

The total number of shares of a corporation that are owned by shareholders, including those held by institutional investors and restricted shares held by company insiders.

Treasury Stock

Shares of a company's own stock that it has reacquired from shareholders but not retired, and are available for reissuance.