If the theory behind an economic model fits the data poorly, you would probably want to
A. restate the research question.
B. use the theory to predict what would happen if the economic setting or economic policies change.
C. start from scratch with a new model.
D. enrich the model with additional assumptions.
Answer: C
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An increase in the marginal product of capital shifts the
A) supply of capital curve rightward. B) supply of capital curve leftward. C) demand for capital curve rightward. D) demand for capital curve leftward.
Define import substitution. Evaluate the success of import substitution strategies in developing countries
What will be an ideal response?
An essential piece of the liquidity preference theory is the demand for money
a. True b. False Indicate whether the statement is true or false
Which of the following is the most frequently used tool of monetary policy?
A. Changing the discount rate B. Changing reserve requirements C. Open-market operations D. Interest rate changes