An Important Condition for Establishing Causation Is Covariation

question 135

Multiple Choice

An important condition for establishing causation is covariation. This is:

• A) a statistical measure of the magnitude of the difference between comparison groups.
• B) the degree to which a study parallels the real world.
• C) the degree to which researchers can rule out other possible causal explanations for an observed relationship.
• D) when changes in one variable are associated with changes in another variable.

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Definitions:

Money Demand

The desired holding of financial assets in the form of money (cash and demand deposits) that can be easily exchanged for goods and services.

Money Supply

The aggregate amount of monetary assets available for use in an economy at a given time.

Aggregate Demand

The comprehensive requirement for products and services in an economic setting, valued at a certain price point during a specific timeframe.

Interest Rates

The cost of borrowing money, expressed as a percentage of the amount borrowed, paid to the lender over a specified period.