Final answer:
Toilet paper sales increasing along with economic growth is an example of Correlation, not causation. Similarly, in financial markets, a rise in demand and a rise in supply will both lead to an increase in the quantity of loans.
Step-by-step explanation:
When toilet paper sales increase and quarterly economic growth also tends to rise, this is an example of Correlation. Correlation means there is a relationship between two variables where they move in some synchronize during a period of time. However, this does not imply that one causes the other. To illustrate, consider the correlation-causation fallacy: if two variables like ice cream sales and burglaries increase simultaneously, a causation conclusion like 'ice cream sales cause burglaries' would be false. Rather, a third variable such as sunny weather could be influencing both.
Concerning financial market changes, a rise in demand and a rise in supply of loans will lead to an increase in the quantity of loans made and received. This is because more people wanting to borrow (demand increase) and more people wanting to lend (supply increase) naturally results in more loan transactions taking placeThe statement, 'When toilet paper sales increase, quarterly economic growth tends to rise,' is an example of correlation. Correlation refers to a relationship between two variables where they tend to change together, but it does not imply causation. In this case, there may be a correlation between toilet paper sales and economic growth, but it doesn't necessarily mean that one causes the other. It could be influenced by other factors, such as consumer behavior or economic conditions.
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