To decide whether or not the slope coefficient is large or small,
A) you should analyze the economic importance of a given increase in X.
B) the slope coefficient must be larger than one.
C) the slope coefficient must be statistically significant.
D) you should change the scale of the X variable if the coefficient appears to be too small.
Ans: A) you should analyze the economic importance of a given increase in X.
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A permanent increase in the domestic money supply
A) must ultimately lead to a proportional decrease in E, and, therefore, the expected future exchange rate must rise proportionally. B) must ultimately lead to a proportional decrease in E, and, therefore, the expected future exchange rate must decrease proportionally. C) must ultimately lead to a proportional rise in E, and, therefore, the expected future exchange rate must rise proportionally. D) must ultimately lead to a proportional rise in E, and, therefore, the expected future exchange rate must rise more than proportionally. E) must ultimately lead to a proportional rise in E, and, therefore, the expected future exchange rate must rise less than proportionally.
Suppose we are at a long-run equilibrium point in an AD-AS model. Then the money supply increases. In the short run, is there any difference between what happens in the simple quantity theory of money (SQTM) version and the monetarist version of the model?
A) There is no difference. B) In the SQTM version, the price level rises; in the monetarist version, it does not. C) In the monetarist version, the price level falls; in the SQTM version, it does not. D) In the monetarist version, the Real GDP rises; in the SQTM version, it does not. E) In the SQTM version, Real GDP falls; in the monetarist version, it does not.
The supply curve for land is perfectly elastic.
Answer the following statement true (T) or false (F)
In a market economy, access to goods and services is increased by ______.
a. social programs b. education c. random selection d. seniority