Autoregressive distributed lag models include
A) current and lagged values of the error term.
B) lags of the dependent variable, and lagged values of additional predictor variables.
C) current and lagged values of the residuals.
D) lags and leads of the dependent variable.
Ans: B) lags of the dependent variable, and lagged values of additional predictor variables.
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The marginal product of labor is the
a. value marginal product of labor multiplied by the price of the good produced. b. total output of labor divided by the quantity of labor used. c. additional output resulting from employing one additional unit of labor. d. same as the marginal revenue product of labor in price-taker markets.
According to one survey 76 percent of Americans said they were not saving enough for retirement. This example of inconsistency over time
a. is rational behavior. b. likely occurs because saving requires a sacrifice in the present for a reward in the distant future. c. likely occurs because Americans don't care about retirement. d. definitely would not happen if Americans earned a greater return on their investments.
If purchasing-power parity holds, then the value of the
a. nominal exchange rate is equal to one. A dollar buys as many goods in the U.S. as it does overseas. b. nominal exchange rate is equal to one. A dollar buys the quantity of foreign currency equal to the U.S. price level divided by the foreign country's price level. c. real exchange rate is equal to one. A dollar buys as many goods in the U.S. as it does overseas. d. real exchange rate is equal to one. A dollar buys the quantity of foreign currency equal to the U.S. price level divided by the foreign country's price level.
Which of the following is not a tool the Fed uses to manage the money supply?
A) open market operations B) setting the discount rate C) setting reserve requirements for deposits in the banking system D) expanding and contracting deposit insurance