Which statement is true?
A. The Fed can induce people to buy United States government securities, but it can't induce them to sell.
B. The Fed can induce people to sell United States government securities, but it can't induce them to buy.
C. The Fed can induce people to buy and sell United States government securities.
D. The Fed cannot induce people to buy or sell United States government securities.
C. The Fed can induce people to buy and sell United States government securities.
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The reliability of a study using multiple regression analysis depends on all of the following with the exception of
A) omitted variable bias. B) errors-in-variables. C) presence of homoskedasticity in the error term. D) external validity.
In a price index, the quantity of goods and services being measured between two periods
a. must be increased. b. must be held constant. c. must be decreased. d. should be increased or decreased.
If the demand curve for a firm's output is P=100-Q, the marginal revenue curve will be
A. MR=50-2Q. B. MR=50-Q. C. MR=P*. D. MR=100-2Q.
Which one of the following is true of a market for used cars?
A. A consumer typically overestimates the probability of getting a lemon (low-quality car). B. As buyers become more pessimistic about their chances of buying a high-quality car, the price of used cars (both low-quality and high-quality) decreases. C. There is a public information problem. D. The willingness to pay is less than the willingness to accept.