The instrumental variables in the two stage least squares estimation method consists of endogenous variables appearing in either equation.
Answer the following statement true (T) or false (F)
False
Rationale: FEEDBACK: The instrumental variables in the two stage least squares method consists of exogenous variables appearing in either equation.
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The part of consumption that is independent of disposable income is called
A) autonomous consumption. B) fixed consumption. C) automatic consumption. D) personal consumption.
Refer to Figure 9.2. A movement from point a to point d could be caused by a simultaneous ________ and ________
A) decrease in taxes; massive crop failure B) increase in government spending; decrease in the price of oil C) increase in taxes; increase in the price of oil D) decrease in the money supply; decrease in government spending
Assume that foreign capital flows into a nation rise due to expected increases in stock market appreciation. If the nation has highly mobile international capital markets and a fixed exchange rate system, what happens to the quantity of real loanable funds per time period and monetary base in the context of the Three-Sector-Model? a. The quantity of real loanable funds rises and monetary base
rises. b. The quantity of real loanable funds rises and monetary base falls. c. The quantity of real loanable funds and monetary base fall. d. The quantity of real loanable funds and monetary base remain the same. e. There is not enough information to determine what happens to these two macroeconomic variables.
Monopolistically competitive firms have no benefits to consumers relative to perfectly competitive firms.
Answer the following statement true (T) or false (F)