Which indicator shows how well a regression line fits through the scatter of data points?
A) F-test
B) R2
C) t-test
D) Durbin-Watson test
B
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The effects of financial deregulation on the IS and LM curves ________ the volatility of interest rates as the curves shift, such as the change in the amount that the interest rate must ________ when the Fed conducts open market purchases
A) decrease, rise B) decrease, fall C) increase, rise D) increase, fall
Suppose Q = KaLb, if a + b < 1 the isoquants will be
a. upward sloping. b. progressively closer together at higher quantities. c. progressively further apart at higher quantities. d. equally spaced.
When a check is written on an account at Bank A and deposited in Bank B, the reserve account of __________ will rise and reserves of the entire banking system will __________
A) Bank A; rise B) Bank A; remain constant C) Bank B; rise D) Bank B; remain constant
Using Figure 1 above, if the aggregate demand curve shifts from AD2 to AD1 the result in the long run would be:
A. P4 and Y1. B. P4 and Y2. C. P5 and Y1. D. P5 and Y2.