Unless otherwise indicated, when economists or investors refer to the interest rate on a financial asset, they referring to the:
A) current yield
B) coupon rate
C) yield to maturity
D) prime rate
C
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Instrumental Variables regression uses instruments to
A) establish the Mozart Effect. B) increase the regression R2. C) eliminate serial correlation. D) isolate movements in X that are uncorrelated with u.
John Maynard Keynes and his followers argued that the Great Depression was primarily the result of:
a. excessive government spending. b. large budget deficits. c. the perverse monetary policies of the Fed. d. insufficient aggregate spending on goods and services.
Which of the following is an example of a positive, as opposed to normative, statement?
a. When the minimum wage is increased, unemployment is a predictable consequence. b. The income tax rate should be increased to offset the budget deficit. c. Increasing government spending is the best way to help the economy move out of a recession. d. More than one of the above are positive statements.
Which of the following is most likely to lead to an increase in the rental price of apartments near your campus?
What will be an ideal response?