Question: Question 1: Consider the regression equation Ci=B0+B1+ui where C is consumption and Y is disposable income. The ui in the regression equation is used to

Question 1: Consider the regression equation Ci=B0+B1+ui where C is consumption and Y is disposable income. The ui in the regression equation is used to capture

(a) none of these

(b) committed regressors

(d) direction of causation

Question 2: Consider the regression equation Ci=B0+B1+ui where C is consumption and Y is disposable income. This is a regression of

(a) Y on C

(b) C on Y

(d) Y and u

Question 3: The following tools are used to study relationships with the exception of

(a) regression

(b) covariance

(d) correlation coefficient

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