If a new independent variable is added to a regression equation, the adjusted R2 increases only if the absolute value of the t statistic of the new variable is greater than one.
Answer the following statement true (T) or false (F)
True
Rationale: FEEDBACK: If a new independent variable is added to a regression equation, the adjusted R2 increases only if the absolute value of the t statistic of the new variable is greater than one in absolute value.
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The increase in spending that occurs because the demand for investment goods increases when the price level falls is known as the
A) price effect. B) international trade effect. C) wealth effect. D) interest rate effect.
The wage premium in the United States has risen consistently starting in
a. 1973. b. 1975. c. 1978. d. 1983.
The case study of segregated street cars in southern cities illustrates which of the following?
a. Streetcar owners opposed segregation laws primarily because they were concerned with civil rights. b. Segregation laws were supported by both local business owners and patrons. c. Firms usually care more about maximizing profits than discriminating against certain customers. d. Laws passed by the government cannot reduce discrimination.
According to the classical dichotomy, when the money supply doubles, which of the following also doubles?
a. the price level and nominal wages b. the price level, but not the nominal wage c. the nominal wage, but not the price level d. neither the nominal wage nor the price level