Which of the following statements is true?
A. Taking logarithmic of a count variable is a suitable way to model it.
B. All standard count data distributions exhibit heteroskedasticity.
C. The nonlinear least squares estimation aims at maximizing R2.
D. Count variables cannot take on the value zero.
Answer: B
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The difference between the nominal interest rate and the real interest rate is the
A) money growth rate minus the growth rate of real GDP. B) GDP growth rate. C) price level. D) inflation rate. E) unemployment rate.
The investment function intersects the saving schedule at an interest rate of 8 percent and a level of investment of $1.2 trillion a year. If the consumption curve intersects the 45-degree reference line at $3 trillion, then
A) the C + I curve will intersect the 45-degree reference line at $1.2 trillion. B) the C + I curve will intersect the 45-degree line at $1.8 trillion. C) the equilibrium level of real GDP is $1.8 trillion. D) the equilibrium level of real GDP is $4.2 trillion.
A positive economic statement
a. contains personal and social value judgments b. is always a mathematical expression c. is never used by an economist d. is proper, provided the advocator is clear the position rests on personal assessment e. is an unbiased report of the facts of the economy
Personal income minus direct taxes is
a. disposable personal income b. net national income c. proprietors' income d. indirect business taxes e. savings income