Pooling independent cross sections across time is useful in providing precise estimators if _____.
A. the relationship between the dependent variable and at least some of the independent variables remains constant over time
B. the relationship between the dependent variable and at least some of the independent variables is linear
C. the relationship between the dependent variable and at least one of the independent variables changes over time
D. the relationship between the dependent variable and at least one of the independent variables is positive
Answer: A
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A) for an extended period. B) at least until a particular date in the future. C) based on outcomes for the unemployment rate and inflation rate. D) until the next Presidential election.
When nominal interest rates increase, the opportunity cost of holding money will ________, and the quantity of money demanded by households and firms will ________
A) increase; increase B) increase; decrease C) decrease; increase D) decrease; decrease
The first major piece of antitrust legislation was:
a. Clayton Act. b. Celler-Kefauver Act. c. Sherman Antitrust Act. d. Rockefeller Act. e. Robinson-Patman Act.
Discuss the determinants of a nation's exchange rate value for its currency in foreign exchange markets. What happens to a nation's balance of trade if the nation's currency appreciates? Why?
What will be an ideal response?