Short-term international investment helps to create a greater level of liquidity, more stable exchange rates, and therefore a decreased likelihood of financial crisis
a. True
b. False
Indicate whether the statement is true or false
False
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Differentiate between perfectly elastic supply and perfectly inelastic supply. When the price of a good is $100, 50 units are supplied. When the price increases to $300, 250 units are supplied. Calculate the price elasticity of supply of the good
What will be an ideal response?
When having a choice of which estimator to use with a binary dependent variable, use
A) probit or logit depending on which method is easiest to use in the software package at hand. B) probit for extreme values of X and the linear probability model for values in between. C) OLS (linear probability model) since it is easier to interpret. D) the estimation method which results in estimates closest to your prior expectations.
According to Keynesians, an increase in the money supply will have its least impact on GDP when the aggregate demand curve intersects:
a. the horizontal portion of the aggregate supply curve. b. the vertical portion of the aggregate supply curve. c. the upward sloping portion of the aggregate supply curve. d. either the horizontal or upward sloping portion of the aggregate supply curve. e. either the horizontal or upward sloping portion of the aggregate supply curve.
According to the BCG Matrix, these products or services exhibit low growth or market share and are often referred to as "cash traps."
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