The assumption that X has full column rank implies that
A) the number of observations equals the number of regressors.
B) binary variables are absent from the list of regressors.
C) there is no perfect multicollinearity.
D) none of the regressors appear in natural logarithm form.
Answer: C
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Compared to Chile (since 1973), Argentine policy has been
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If output begins to grow substantially faster than capital and labor inputs, then the real business cycle model predicts, ceteris paribus, ________
A) an increase in inflation B) a decrease in employment C) a decrease in investment D) a business cycle expansion