The higher the inflation differential between countries, the less likely it is that relative PPP will hold
Indicate whether the statement is true or false
FALSE
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Which of the following is a likely consequence of a fall in private investment?
A) Mortgage defaults fall. B) Asset prices rise. C) Labor supply falls. D) Consumption falls.
First-past-the-post voting structures tend to lead to a:
A. two-party system. B. three-party system. C. one-candidate system. D. multi-party system.
Whenever there is strong heteroskedasticity, it is preferable to use OLS rather than WLS, which may use a possibly misspecified variance function
Answer the following statement true (T) or false (F)
Equilibrium price refers to the:
A.) Price at which most producers are willing to sell their product. B.) Price at which the quantity demanded of a good equals the quantity supplied. C.) Price that equals marginal cost. D.) Balance between what producers want to charge and what the government will allow.