The interpretation of the slope coefficient in the model ln(Yi) = ?0 + ?1Xi + ui is as follows:
A) a 1% change in X is associated with a ?1 % change in Y.
B) a change in X by one unit is associated with a 100 ?1 % change in Y.
C) a 1% change in X is associated with a change in Y of 0.01 ?1.
D) a change in X by one unit is associated with a ?1 change in Y.
Answer: A) a 1% change in X is associated with a ?1 % change in Y.
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Use the following diagram to answer the next question.
Which of the following would cause a move from MS1 to MS2?
A. The banking system decides to hold less excess reserves and make more loans. B. The federal funds rate increases. C. The discount rate is increased by the regional Federal Reserve banks. D. The Federal Open Market Committee decides to sell bonds.
The figure above shows Sam's budget line. Which of the following would result in Sam's budget line rotating inward and not changing its vertical intercept?
A) a decline in his preference for coffee B) a fall in the price of a gallon of gasoline C) a decrease in Sam's income D) an increase in the price of a pound of coffee
In 1990 the UN placed trade sanctions on Iraqi oil. In 1996, Iraq was allowed limited export of oil to make war reparations. What was the predicted effect of the two events on equilibrium price and quantity of oil?
A. The price rose initially, then fell (failing to regain its former losses); quantity rose, then fell B. The price fell initially, then rose (failing to return to its former low level); quantity fell and then rose C. The price rose initially, then fell (failing to regain its former losses); quantity fell and then rose D. The price fell initially, then rose (failing to return to its former low level); quantity rose and then fell
If we compare income percentages of total income of the highest quintile in 1968 with 2008, we would find that it was
A. rising. B. staying about the same. C. falling.