Which of the following is a test of nonnested models??
A. ?Davidson-MacKinnon test
B. ?Standard F test
C. ?Regression Specification Error Test
D. Whitetest
Answer: A
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Make use of a graph of the foreign exchange market to show how the Brazilian Central Bank can use an unsterilized intervention to reduce the value of its currency, the real, in terms of the dollar
What will be an ideal response?
The Keynesian model of macro equilibrium provided an explanation for the:
a. high rates of both unemployment and inflation experienced during the 2110s. b. prolonged high rates of unemployment experienced during the 1930s. c. low interest rates of the 1950s and 1960s. d. budget surpluses and rapid growth of the U.S. economy during the 1990s.
If unemployment benefits, payable for 26 weeks, became more generous it would be likely to _____ structural unemployment and _____ the natural rate of unemployment:
a. Not change; not change b. Not change; increase c. Increase; increase d. Increase; not change
In the prisoner's dilemma game:
A. a stable outcome is impossible. B. a cooperative strategy can lead to a more beneficial outcome for both players. C. neither player has a dominant strategy. D. a noncooperative strategy will lead to a positive-positive outcome.