Instrumental variables requires that the variable not be correlated with the outcome variable.
A. True
B. False
C. Uncertain
A. True
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The equation TR/Q is used to compute
A) total cost. B) average revenue. C) demand. D) marginal revenue.
_________ tend to be more intervention minded and hence more favorable disposed toward activist stabilization policies.
A. Liberals B. Conservatives C. Politicians D. None of the above is correct.
Does the Fed have good control over the money supply?
a. Yes, open market operations generate exact changes in bank lending. b. Yes, reserve requirements create new loans. c. No, because of difficulties estimating the reserve ratio. d. No, because of difficulties estimating the size of the excess reserves and cash holdings by the public.
Assume that there are two investments very similar in all respects, but Investment X has a higher rate of return than does Investment Y. As a result of the arbitrage process, the price of Investment
A. X will fall and its rate of return will fall B. Y will rise and its rate of return will fall C. X will fall and its rate of return will rise D. Y will fall and its rate of return will rise