In the linear probability model, the interpretation of the slope coefficient is
A) the change in odds associated with a unit change in X, holding other regressors constant.
B) not all that meaningful since the dependent variable is either 0 or 1.
C) the change in probability that Y=1 associated with a unit change in X, holding others regressors constant.
D) the response in the dependent variable to a percentage change in the regressor.
Ans: C) the change in probability that Y=1 associated with a unit change in X, holding others regressors constant.
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Answer the next question based on the following consolidated balance sheet for the commercial banking system.AssetsLiabilities + Net WorthReserves$50,000Checkable deposits$120,000Loans75,000Stock shares130,000Securities25,000 Property100,000 If the reserve requirement is 10%, and the above data is the balance sheet for the entire banking sector, then the maximum amount by which the commercial banking system can expand the supply of money by lending is
A. $120,000. B. $380,000. C. $700,000. D. $440,000.
When the average price of videocassette recorders (VCRs) falls, the result is
A. an increase in the quantity of VCRs demanded. B. an increase in the quantity of VCRs supplied. C. a decrease in the quantity of VCRs demanded. D. an increase in supply of VCRs.
The price ceiling that was used to control the price of housing in New York City and other cities was called ____________ .
a. rent control b. rent abatement c. housing control d. equilibrium price
When inflation has been persistent, as was the case in the United States during the 1970s, low unemployment rates will likely be associated with
A) low natural rates of unemployment. B) high natural rates of unemployment. C) low but stable rates of inflation. D) high but stable rates of inflation. E) increases in the inflation rate.