Crowding out refers to the effect that:
A. C and I are indirectly affected by changes in G.
B. C is directly affected by changes in G.
C. C and I are directly affected by changes in G.
D. C and I are completely unrelated to changes in G.
A. C and I are indirectly affected by changes in G.
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Refer to Figure 11-1. The marginal product of the 3rd worker is
A) 57. B) 19. C) 15. D) 11.
Classical economists believe that
A) money is neutral. B) an increase in the real money supply affects output. C) inflation is determined by wage growth. D) monetary policy should be used to combat recessions.
Devaluation of a currency stimulates exports
Indicate whether the statement is true or false
The intercept in the multiple regression model
A) should be excluded if one explanatory variable has negative values. B) determines the height of the regression line. C) should be excluded because the population regression function does not go through the origin. D) is statistically significant if it is larger than 1.96.