An explanatory variable is said to be exogenous if it is correlated with the error term.
Answer the following statement true (T) or false (F)
False
Rationale: FEEDBACK: An explanatory variable is said to be endogenous if it is correlated with the error term.
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Asymmetric information in financial markets is a potential problem usually resulting from:
A. lenders having more information than borrowers. B. the fact that people are basically dishonest. C. the uncertainty about Federal Reserve monetary policy. D. borrowers having more information than the lenders.
Which of the following is FALSE regarding bilateral monopoly?
A. The price outcome is easily determined. B. Bilateral monopoly is defined as a market structure in which a single buyer faces a single seller. C. An example of bilateral monopoly is a state education employer facing a single teachers' union in the labor market. D. Bilateral monopoly is a market structure consisting of a monopolist and a monopsonist.
The portion of the money supply controlled by a central bank is
a. currency. b. deposits. c. reserves. d. the monetary base. e. the money multiplier.
What economic conditions are relevant in managerial decision making?
What will be an ideal response?