Which of the following refers to a relatively high correlation among the independent variables of a regression equation?
A) autocorrelation
B) the identification problem
C) statistically insignificant regression coefficients
D) multicollinearity
D
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If a contractionary monetary policy lowers the price level by more than expected, it raises the real value of consumer debt. This reduces consumer expenditure through
A) the bank lending channel. B) Tobin's q. C) the traditional interest-rate channel. D) the household liquidity effect.
In 2007, at the federal level government purchases of goods and services putting transfer payments and interest aside, amounted to approximately what percentage of GDP?
a. 5 percent b. 15 percent c. 25 percent d. 30 percent e. 50 percent
Explain the difference between how adaptive expectations are formed and how rational expectations are formed. How does this difference affect the speed at which economic variables are expected to change?
What is the newest money supply tool available to the Fed?
a. the reserve requirement ratio b. the discount rate c. the interest rate on reserves held at the Fed d. open market operations