In the multiple regression model 
,if x1 is correlated with u but the other independent variables are uncorrelated with u, then all of the OLS estimators are generally consistent.
Answer the following statement true (T) or false (F)
False
Rationale:
, if x1 is correlated with u but the other independent variables are uncorrelated with u, then all of the OLS estimators are generally inconsistent.?You might also like to view...
Compared to Italy, the U.S. has a ________ union membership percentage of its labor force.
Fill in the blank(s) with the appropriate word(s).
Based on the graph showing the effects of a government budget surplus, how would a budget surplus affect the equilibrium quantity of loanable funds exchanged?
a. It would create a higher equilibrium quantity of loanable funds exchanged.
b. It would create a lower equilibrium quantity of loanable funds exchanged.
c. It would have no influence on the equilibrium quantity of loanable funds exchanged.
d. It would drive the equilibrium quantity of loanable funds exchanged to zero.
As commercial banks keep more excess reserves, what happens to money creation?
(A) It remains the same. (B) It could either increase or decrease. (C) It increases. (D) It decreases.
According to the theory of purchasing power parity, the real exchange rate between two currencies will equal ________ in the long run.
A. 1 B. the ratio of the rates of inflation of the two currencies C. the nominal exchange rate D. 0