Which of the Following Is True

question 104

Multiple Choice

Which of the following is true?

• A)Virtually all theories in economics are expressed using a ceteris paribus ("let everything else be equal" or "holding everything else constant") assumption.
• B)The fallacy of composition is that, even if something is true for an individual, it is not necessarily true for many individuals as a group.
• C)One must always be careful not to confuse correlation with causation.
• D)Positive analysis involves statements about what is or what is likely to happen.
• E)All of the answers are true.

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Definitions:

Maturity Dates

The specific dates on which a financial instrument such as a bond, loan, or fixed income instrument becomes due and is to be paid off.

95-Day Note

A financial instrument specifying repayment of a loan or debt within 95 days.

5-Month Note

A short-term financial instrument that matures or is due for payment in five months.

Calculating Interest

The process of determining the cost of borrowing money or the earnings from lending money, based on the principal amount, rate, and time period.