A classical model of the economy predicts
A) full employment in the long run.
B) a 15 to 20 percent unemployment level whenever the economy is in equilibrium.
C) the same unemployment rates as the Keynesian model.
D) cyclical changes in the unemployment rate.
A
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Under a fixed exchange rate regime, if a country has an overvalued exchange rate, then its central bank's attempt to keep its currency from ________ will result in a ________ of international reserves
A) depreciating; gain B) depreciating; loss C) appreciating; gain D) appreciating; loss
By including another variable in the regression, you will
A) decrease the regression R2 if that variable is important. B) eliminate the possibility of omitted variable bias from excluding that variable. C) look at the t-statistic of the coefficient of that variable and include the variable only if the coefficient is statistically significant at the 1% level. D) decrease the variance of the estimator of the coefficients of interest.
Suppose, in the United States, each farmer is given a federal agricultural subsidy worth $30,000 . What will be the effect of such subsidy?
a. They discourage domestic agricultural production. b. They allow U.S. farmers to sell their products for lower prices in foreign markets. c. They give foreign producers an unfair cost advantage. d. They increase the amount of agricultural imports into the United States. e. The price of the primary products decline in the U.S. market.
Increasing the number of corporations whose stocks are in your portfolio reduces market risk
a. True b. False Indicate whether the statement is true or false