Author Question: If there is a causal relationship between two variables X and Y A) both should be used as ... (Read 108 times)

Cooldude101 · **on:** Jul 1, 2018

If there is a causal relationship between two variables X and Y

A) both should be used as explanatory variables.
B) then the causal variable should be used as the explanatory variable.
C) then they must be positively correlated.
D) one of them can be omitted from the analysis.

Question 2

If a bond's coupon adjusts to pay a constant real rate of return, then an increase in inflation would cause

A) the nominal coupon payment to rise.
B) the nominal coupon payment to fall.
C) the nominal coupon payment to remain unchanged.
D) the bond's price to fluctuate wildly.