Multicollinearity Is Present When There Is a High Degree of Correlation

question 31

True/False

Multicollinearity is present when there is a high degree of correlation between the dependent variable and any of the independent variables.

---

Definitions:

Deadweight Loss

A loss of economic efficiency that can occur when equilibrium for a good or service is not achieved or is not achievable.

Tax

Mandatory financial charge or some other type of levy imposed upon a taxpayer by a governmental organization.

Tax Cuts

Reductions in the amount of taxes that individuals or corporations are required to pay to the government.

Tax Revenue

The monetary gains that are acquired by governments from taxation.