Question: What would you expect to be the correlation coefficient between the following variables? Should the variables be measured contemporaneously or might there be a lag
What would you expect to be the correlation coefficient between the following variables? Should the variables be measured contemporaneously or might there be a lag in the effect of one upon the other?
(a) Nominal consumption and nominal income.
(b) GDP and the imports/GDP ratio.
(c) Investment and the interest rate.
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