Exhibit 2-2
-Exhibit 2-2 shows the relationship between X and Y between 2007 and 2016. Suppose this correlation between X and Y continues to hold for the next 10 years. If Y declines over the period 2017 through 2020, we would expect
A) X to fall over the same period because X and Y are negatively correlated.
B) X to increase over the same period because X and Y are positively correlated.
C) X to increase over the same period because X and Y are negatively correlated.
D) the correlation to be unknown because we do not know the units of measurement for X and Y and thus cannot say anything about how X and Y are related.
E) X to fall over the same period because X and Y are positively correlated.
Correct Answer:
Verified
Q22: Economics has always been a good example
Q23: A microeconomic model must be much smaller
Q24: An economic model is a tool used
Q25: A model gives the most realistic description
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