<h3>
Answer: B) Neither of the above</h3>
Explanation:
Correlation does not lead to causation, no matter how strong the correlation may be. You'll need to do an experiment to see if one variable causes the other. There may be other factors that aren't being considered here. We consider these confounding variables.
An example of correlation doesn't lead to causation could be this: In the summertime, ice cream sales increase and the amount of sunburns increase. Both ice cream sales and sunburns are strongly positively correlated. Does eating ice cream cause a sunburn? The answer is "no" because clearly the sun is responsible for that. So the sun would be the confounding variable here. Specifically, the amount of sunlight exposure would be key here.
Answer:
Erv will be obligated to pay the note if Dirk defaults on the note.
Explanation:
Erv is the guarantor of Dirk's note. If for any reason Dirk cannot pay the note, then Erv will be responsible for paying the note. Under normal circumstances, Dirk should be responsible for paying the note, but if he just doesn't wish to pay it anymore, Erv will have to pay it, but he will also be able to demand for repayment from Dirk.
Answer:
Paying 20% of your credit card.
Explanation:
Paying off your balance every month is the best way to avoid interest.
Answer:
A) 50 millions
B) 10
C) 0.10
Explanation:
Government spending multiplier:
1/(1-MPC) = 1/MPS
1/(1-0.75) = 1/0.25 = 4
The government multiplier is 4 thus, to increase the GDP by 200 million the government spending should be of 50 millions as:
government spending x multiplier = increasein GDP
G x 4 = 200
G = 200/4 = 50
we are given with G and increase in GDP we should solve for multiplier:
government spending x multiplier = increasein GDP
20 x m = 200
m = 200 / 20 = 10
C) the multiplier is: 1/(1-MPC) = 1/MPS
if m = 10 then:
1/MPS = 10
MPS = 1/10 = 0.10
Ching Chong
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