Monopolistically competitive firms face a perfectly elastic demand curve
Indicate whether the statement is true or false
FALSE
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Why is the nominal interest rate the opportunity cost of holding money?
What will be an ideal response?
The Bank of Japan is Japan's central bank. As part of its duties, the Bank of Japan would
A) provide banking services to Japan's citizens and firms. B) provide banking services to foreigners. C) control the quantity of money in circulation in Japan. D) change tax rates.
If real GDP helps to predict the path of a particular macroeconomic variable, it is said to be a
A) conventional variable. B) coincident variable. C) leading variable. D) lagging variable.
Sample selection bias
A) occurs when a selection process influences the availability of data and that process is related to the dependent variable. B) is only important for finite sample results. C) results in the OLS estimator being biased, although it is still consistent. D) is more important for nonlinear least squares estimation than for OLS.