In the regression model Yi = ?0 + ?1Xi + ?2Di + ?3(Xi × Di) + ui, where X is a continuous variable and D is a binary variable, to test that the two regressions are identical, you must use the
A) t-statistic separately for ?2 = 0, ?2 = 0.
B) F-statistic for the joint hypothesis that ?0 = 0, ?1 = 0.
C) t-statistic separately for ?3 = 0.
D) F-statistic for the joint hypothesis that ?2 = 0, ?3= 0.
Ans: D) F-statistic for the joint hypothesis that ?2 = 0, ?3= 0.
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When financial institutions go on a lending spree and expand their lending at a rapid pace they are participating in a
A) credit boom. B) credit bust. C) deleveraging. D) market race.
Karl Marx believed that the entrepreneur derived his profit from __________________.
Fill in the blank(s) with the appropriate word(s).
Refer to the above figure for the corn market. The government wants to set an effective price support in the corn market. To be effective the price should be set
A. at P2. B. at P1. C. at P3. D. below P1.
Refer to the information provided in Table 33.3 below to answer the question(s) that follow. Table 33.3
Refer to Table 33.3. Trade will flow in both directions between countries only if the price of the euro is between
A. $.44 and $1.00. B. $1.00 and $2.25. C. $.40 and $.50. D. $.60 and $.75.