Ascertaining whether or not a regressor is strictly exogenous or exogenous ultimately requires all of the following with the exception of
A) economic theory.
B) institutional knowledge.
C) expert judgment.
D) use of HAC standard errors.
Answer: D
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If there is no Ricardo-Barro effect, when the government runs a budget surplus, it
A) contributes to financing investment. B) competes with businesses for private saving. C) shifts the demand for loanable funds curve rightward. D) shifts the supply of loanable funds curve leftward. E) shifts the demand for loanable funds curve leftward.
Everything else held constant, if a central bank makes an unsterilized ________ of foreign assets, then the domestic money supply will increase and the domestic currency will ________
A) purchase; appreciate B) purchase; depreciate C) sale; appreciate D) sale; depreciate
Economists like Hernando de Soto feel that a ________ is the key to economic development.
A. stable currency B. strong titling system C. strong currency D. strong national defense
The money market clears as people with excess real balances:
a. buy bonds and drive down nominal rates of interest until the demand for real balances equals supply. b. sell bonds and drive up nominal rates of interest until the demand for real balances equals supply. c. increase spending, driving up nominal GDP and raising nominal rates of interest. d. sell financial assets such as stocks to increase the total supply of real balances.