In the Keynesian model in the long run, an increase in the money supply will cause
A. a decrease in the real interest rate but no change in output.
B. an increase in the real interest rate and an increase in output.
C. an increase in output and a decrease in the real interest rate.
D. no change in either the real interest rate or output.
Answer: D
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In the case of heterogeneous causal effects, the following is not true:
A) in the circumstances in which OLS would normally be consistent (when E(ui Xi) = 0), the OLS estimator continues to be consistent. B) OLS estimation using heteroskedasticity-robust standard errors is identical to TSLS. C) the OLS estimator is properly interpreted as a consistent estimator of the average causal effect in the population being studied. D) the TSLS estimator in general is not a consistent estimator of the average causal effect if an individual's decision to receive treatment depends on the effectiveness of the treatment for that individual.
During the colonial period, the largest cities were typically
a. port towns. b. located in the hinterland. c. in the South. d. landlocked.
In the graph below, the price of capital is $500 per unit. Which of the following combinations of capital and labor lies on the expansion path?
A. 500L, 100K B. 1100L, 220K C. 800L, 160K D. both a and b E. none of the above
Refer to Figure 4-3. If the market price is $2.50, what is Kendra's consumer surplus?
A) $9.00 B) $7.50 C) $1.50 D) $0