In a Bivariate Correlation, a Could Be the Cause of B

question 56

Short Answer

In a bivariate correlation, A could be the cause of B, but B could be causing A. The difficulty in deciding between these alternatives is known as the _________ problem.

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Definitions:

Disposable Income

Economic resources that households can utilize for spending and saving actions after income tax deductions.

Savings

The portion of income that is not spent on current expenditures and instead set aside for future use.

Disposable Income

The disposable capital for households' spending and saving endeavors after income taxes.

Consumption

The process of purchasing goods and services to fulfill the needs and wants of individuals.