Credibility is important to successful anti-inflationary policy in ________
A) new Keynesian theory
B) traditional Keynesian theory
C) real business cycle theory
D) post classical theory
A
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To test joint linear hypotheses in the multiple regression model, you need to
A) compare the sums of squared residuals from the restricted and unrestricted model. B) use the heteroskedasticity-robust F-statistic. C) use several t-statistics and perform tests using the standard normal distribution. D) compare the adjusted R2 for the model which imposes the restrictions, and the unrestricted model.
The ABC Corporation earned a real rate return of 4.5 percent on an investment. In the economy, the nominal rate of interest was 6 percent and the rate of inflation was 3 percent. We can conclude that
A) the investment was unprofitable. B) the investment was profitable. C) the real rate of interest was 9 percent. D) the real rate of interest was 1.5 percent.
Barbers give a price discount to kids. According to price discrimination, if barbers use price discrimination, this implies demand for hair cuts by kids is more elastic
a. True b. False
Table 1.2 shows the hypothetical trade-off between different combinations of Stealth bombers and B-1 bombers that might be produced in a year with the limited U.S. capacity, ceteris paribus.Table 1.2Production Possibilities for BombersCombinationNumber of B-1 BombersOpportunity cost(Foregone Stealth)Number of Stealth BombersOpportunity cost (Foregone B-1)A20NA195 B35 180 C45 150 D50 100NARefer to Table 1.2. In the production range of 20 to 35 B-1 bombers, the opportunity cost of producing 1 more B-1 bomber is
A. 35/20 of Stealth bombers. B. 15 Stealth bombers. C. 195/20 of Stealth bombers. D. 1 Stealth bomber.