?Which of the following rules out perfect collinearity among the regressors?
A. ??Multiple regression
B. ?Simple regression
C. ?Time series regression
D. ?Cross-sectional regression
Answer: D
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At any point along the LM curve,
A) the quantity of money demanded equals the quantity of money supplied. B) the economy must be in general equilibrium. C) the nominal interest rate must equal the real interest rate. D) saving must equal investment.
When people donate money to a charity, they behave
A) rationally if the act gives them satisfaction. B) irrationally because the act does not benefit anyone. C) in an unpredictable manner because the act involves no incentive. D) in a way that only makes themselves worse off.
A high school student who voluntarily includes a writing sample with their college application is an example of:
A. signaling. B. screening. C. building a reputation. D. statistical discrimination.
The main purpose of expansionary monetary policy is to
A. expand Treasury borrowing. B. increase reserve requirements. C. insure deposits. D. reduce interest rates.