If the instrumental variable estimator has an upward bias, the ordinary least square estimator always has a downward bias.
Answer the following statement true (T) or false (F)
False
Rationale: FEEDBACK: It is possible for the directions of the asymptotic biases to be different for IV and OLS but this situation is usually rare in practice.
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Based on the figure below. Starting from long-run equilibrium at point C, a tax cut that increases aggregate demand from AD to AD1 will lead to a short-run equilibrium at point ________ and eventually to a long-run equilibrium at point ________, if left to self-correcting tendencies. 
A. D; C B. B; C C. B; A D. D; B
Total planned expenditures for domestically produced goods and services consist of
A) consumer spending, business spending, government spending, and net export spending. B) consumer spending, business spending, government spending, and import spending. C) consumer spending, business spending, and net export spending only D) government spending, business spending, and import spending only.
A state of consumer equilibrium for two goods consumed exists when the:
a. marginal utility of all goods is the same for the last dollar spent on each good. b. marginal utility per dollar's worth of two goods is the same for the last dollar spent on each good. c. price of two goods is the same for the last dollar spent on each good. d. marginal cost per dollar spent on two goods is the same.
If a government of a country with a zero trade balance increases its budget deficit, then the real exchange rate
a. appreciates and there is a trade surplus. b. appreciates and there is a trade deficit. c. depreciates and there is a trade surplus. d. depreciates and there is a trade deficit.