Refer to the following table:
The optimal level of activity is:
A. 2
B. 3
C. 4
D. 5
E. There is no optimal level in this case because marginal benefit does not equal marginal cost at any of the activity levels.
Answer: B
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To maintain free international flows of capital and domestic monetary autonomy, in most of the world today, exchange rates are __________ . One of the major exceptions is ___________
Fill in the blank(s) with the appropriate word(s).
The principal reason that monetary policy has lags is that it takes a long time for
a. changes in the interest rate to change aggregate demand. b. changes in the money supply to change interest rates. c. the Fed to make changes in policy. d. Congress and the President to approve Fed policy.
An outcome is socially optimal if it:
A. is determined by the government. B. maximizes total economic surplus. C. leaves no unexploited opportunities for individuals. D. is an equilibrium outcome.
Let R2unrestricted and R2restricted be 0.4366 and 0.4149 respectively. The difference between the unrestricted and the restricted model is that you have imposed two restrictions. There are 420 observations. The F-statistic in this case is
A) 4.61 B) 8.01 C) 10.34 D) 7.71