During a certain year, the consumer price index increased from 120 to 132 and the purchasing power of a person's bank account increased by 4 percent. For that year,
a. the nominal interest rate was 6 percent.
b. the nominal interest rate was 14 percent.
c. the inflation rate was 12 percent.
d. the inflation rate was 9 percent.
b
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Economist call a person who does not pay for a good or service they consume
A. A free loader B. A free rider C. Selfish D. An opportunist
A portfolio manager for a property and casualty insurance company who anticipates a recession is likely to shift the company's portfolio into
A) short-term securities. B) preferred stock. C) common stock. D) long-term corporate bonds.
Economic regulation is government policy designed to
a. improve health and safety in products and in working conditions b. prevent firms from monopolizing or developing a cartel in existing competitive markets c. eliminate existing monopolies by breaking them apart into many smaller firms d. create monopolies by forcing competitive firms to merge e. control price and output in industries where monopoly is desirable
Which of the following will cause Ordinary Least Square (OLS) estimates of a simple regression model, y = 
+
data-mathml="%3Cmath%20style%3D%22font%2Dfamily%3A%27Times%20New%20Roman%2C%20serif%27%22%20xmlns%3D%22http%3A%2F%2Fwww%2Ew3%2Eorg%2F1998%2FMath%2FMathML%22%3E%3Cmstyle%20mathsize%3D%2215px%22%3E%3Cmsub%3E%3Cmi%3E%26%23946%3B%3C%2Fmi%3E%3Cmn%3E1%3C%2Fmn%3E%3C%2Fmsub%3E%3C%2Fmstyle%3E%3C%2Fmath%3E" src="@@PLUGINFILE@@/ppg__cognero__Ch_02_The_Simple_Regression_Model__media__f7681442-9545-4ef9-b1b1-85201acc82bc.PNG" style="vertical-align:middle;" />x + u to be biased?
A. Every individual in the population has the same probability of being observed in the sample.
B. The observed values of span a wide range.
C. The constant,
is greater than the coefficient, 
.
D. The constant, is greater than the coefficient, x .