Two Variables Interact When

question 20

Multiple Choice

Two variables interact when

• A)the effect of one independent variable depends on the level of the other independent variable.
• B)both variables are affected equally by some third factor.
• C)there are no main effects.
• D)there are main effects.

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Definitions:

Interest Rate

The percentage of an amount of money charged for its use per a certain period.

Perpetuity

A type of annuity that generates an infinite series of payments into the future, without an end date.

Present Value

The value now of a future monetary total or cash flows, based on an established return rate.

Cash Flow

The overall flow of cash and assets similar to cash entering and exiting a corporation.