In the Fixed Time Effects regression model, you should exclude one of the binary variables for the time periods when an intercept is present in the equation
A) because the first time period must always excluded from your data set.
B) because there are already too many coefficients to estimate.
C) to avoid perfect multicollinearity.
D) to allow for some changes between time periods to take place.
Answer: C) to avoid perfect multicollinearity.
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Economists refer to the series of induced increases in consumption spending that result from an initial increase in autonomous expenditures as the ________ effect
A) multiplier B) expenditure C) aggregate demand D) consumption
(Consider This) The Native American arts and crafts story illustrates the twin ideas of:
A. product differentiation and monopolistic competition. B. excess capacity and monopolistic competition. C. local oligopoly and strategic behavior. D. pure monopoly and price discrimination.
When the price level is below the level at which the aggregate demand curve crosses the long run aggregate supply curve
A. there will be pressures that will lead to a shift of either the aggregate demand or the long run aggregate supply curves. B. total planned real expenditure will be lower than actual real GDP, and the price level will increase. C. total planned real expenditures will exceed actual real GDP, and the price level will increase. D. there will be no price level change.
When setting reimbursement rates, states must
A. pay what private insurance companies pay in the state. B. pay enough so that adequate services are available. C. pay the median rate charged by physicians in the state for each procedure. D. follow a uniform national standard.