You can determine the lag lengths in a VAR
A) by using confidence intervals.
B) by using critical values from the standard normal table.
C) by using either F-tests or information criteria.
D) with the help from economic theory and institutional knowledge.
Answer: C
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Suppose that an indifference curve for Jack is drawn measuring quantities of pencils along the horizontal axis and quantities of pens along the vertical axis. If the marginal value of an additional pencil is 3 pens for Jack, the slope of his indifference curve in this range is
a. 1/3. b. 3. c. 6. d. dependent upon the prices of the two goods
Option A provides $9,000 with probability 50 percent or $11,000 with probability 50 percent. Option B provides $8,000 with probability 50 percent or $12,000 with probability 50 percent. For most people the cost of risk associated with B is
A) less than that associated with A. B) the same as that associated with A. C) exactly twice that associated with A. D) more than twice that associated with A.
Logrolling refers to attempts by individuals to use government action to make themselves better off at the expense of others
Indicate whether the statement is true or false
Which of the following would cause the consumption function to shift down?
a. A decrease in disposable income b. A decrease in taxes c. An increase in taxes d. An increase in the marginal propensity to consume e. None of the above