The R2 calculated in a spurious regression is a valid and efficient estimate of the goodness-of-fit of the regression equation.
Answer the following statement true (T) or false (F)
False
Rationale: FEEDBACK: The R2 calculated in a spurious regression is not a valid and efficient estimate of the goodness-of-fit of the regression equation as the calculated value can be very high even if there is no relationship between the dependent variable and the explanatory variables.
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The aggregate supply curve will shift to the left if
A. energy prices fall. B. technology and productivity increase in the economy. C. the capital stock of the economy increases. D. the money wage rate increases.
Suppose Chris is offered the following gamble: with probability 0.1 he will win $90, with probability 0.4 he will win $50, and with probability 0.5 he will lose $60. Chris will:
A. accept this gamble if he is either risk neutral or risk-averse. B. accept this gamble if he is risk-averse, but not if he is risk-neutral. C. not accept this gamble if he is risk-neutral. D. accept this gamble if he is risk neutral, but not if he is risk-averse.
People with similar, passionate views that are not mainstream can gain political power by ______.
a. each voting individually b. keeping their feelings quiet and pretending to be mainstream c. forming a special interest group to lobby their cause d. boycotting the election
An important effect of foreign currency speculators is that
A. they have consistently lost money and have left the market. B. they have pushed exchange rates to wider extremes than most economists predicted. C. they actually limit the volatility of exchange rate movements. D. they have had no effect at all on exchange rate volatility.