The logit model can be estimated and yields consistent estimates if you are using
A) OLS estimation.
B) maximum likelihood estimation.
C) differences in means between those individuals with a dependent variable equal to one and those with a dependent variable equal to zero.
D) the linear probability model.
Ans: B) maximum likelihood estimation.
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The federal funds rate is not just targeted by the Fed but is determined by the Fed. Market forces are irrelevant
a. True b. False
If producers have imperfect information about the general price level and sometimes misinterpret changes in the general price level as changes in relative prices, then
A. the aggregate demand curve is horizontal. B. the short-run aggregate supply curve slopes upward. C. the aggregate demand curve is vertical. D. the short-run aggregate supply curve is vertical.
For a competitive firm, the marginal revenue product is:
A. always positive and nears zero as quantity increases. B. always negative and nears zero as quantity increases. C. decreasing eventually as quantity increases. D. zero when profits are maximized.
Refer to the data. If a 10 percent proportional tax on income is imposed, the consumption schedule will now be:
Answer the question on the basis of the following before-tax consumption
schedule for an economy:
