When there is multicollinearity in an estimated regression equation,
a. the coefficients are likely to be small.
b. the t-statistics are likely to be small even though the R2 is large.
c. the coefficient of determination is likely to be small.
d. the problem of omitted variables is likely.
e. the error terms will tend to have a cyclical pattern.
b
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Which of the following will cause an increase in producer surplus?
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A monopolistically competitive industry has
A) significant barriers to entry. B) differentiated products. C) mutually dependent firms. D) a small number of large firms.
Changes in inventory are included in the investment component of GDP
a. True b. False Indicate whether the statement is true or false