A simultaneous equations model is suitable whenever two variables are determined simultaneously.
Answer the following statement true (T) or false (F)
False
Rationale: FEEDBACK: Just because two variables are determined simultaneously, it does not imply that a simultaneous equations model is suitable. The criteria for using a simultaneous equations model is that each equation in the model should make sense in isolation from the other equation.
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A higher interest rate will:
What will be an ideal response?