The formulae for the AIC and the BIC are different. The
A) AIC is preferred because it is easier to calculate
B) BIC is preferred because it is a consistent estimator of the lag length
C) difference is irrelevant in practice since both information criteria lead to the same conclusion
D) AIC will typically underestimate p with non-zero probability
Answer: B
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As part of its proposal to win the 2012 Olympics, London developed a carbon offset plan to reduce the Games' impact on the environment. In 2011, the organizers decided to drop this plan to reduce emissions. We can conclude that
A) the marginal cost of reducing emissions exceeded the marginal benefits of reducing emissions. B) the organizers are not making a rational decision. C) the organizers are ignoring a sunk cost. D) there are no incentives to reduce carbon emissions. E) it is difficult to calculate the cost of reducing emissions.
An increase in the reserve ratio would tend to
a. increase excess reserves and raise the money multiplier. b. decrease excess reserves and decrease the money multiplier. c. increase excess reserves and decrease the money multiplier. d. decrease excess reserves and raise the money multiplier.
When a company hires a celebrity to endorse its product, it aims to send a message about: a. the heritage associated with its product
b. the competitive price offered for its product. c. the market share it holds. d. the quality of its product.
If a bank has reserves of $100 million and demand deposits of $700 million, how much are the bank's (a) required reserves and (b) excess reserves?
What will be an ideal response?