In order to make reliable forecasts with time series data, all of the following conditions are needed with the exception of
A) coefficients having been estimated precisely.
B) the regression having high explanatory power.
C) the regression being stable.
D) the presence of omitted variable bias.
Ans: D) the presence of omitted variable bias.
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An economy is considered a small open economy if it
A) is too small to affect the world real interest rate. B) has GDP less than 1% of world GDP. C) doesn't trade internationally. D) has a zero trade balance.
A key difference between a Walrasian market and most auction markets is that in most auction markets
A) transactions occur continuously. B) bid prices exceed offer prices. C) only dealers have complete information. D) offer prices exceed bid prices.
Make use of a graph of the foreign exchange market to show how the Brazilian Central Bank can use an unsterilized intervention to reduce the value of its currency, the real, in terms of the dollar
What will be an ideal response?
According to the supply-side economists, a cut in the marginal income tax rate would cause
a. labor supply to rise, output to rise, and the price level to fall. b. labor supply to rise, the price level to rise, and output to fall. c. labor supply to fall, the price level to rise, with output unchanged. d. labor supply to rise, the price level to fall, with output unchanged.