The two stage least squares estimator is less efficient than the ordinary least squares estimator when the explanatory variables are exogenous.
Answer the following statement true (T) or false (F)
True
Rationale: FEEDBACK: The two stage least squares estimator is less efficient than the ordinary least squares estimator when the explanatory variables are exogenous.
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The fact that output gaps will not last indefinitely, but will be closed by rising or falling inflation is the economy's:
A. income-expenditure multiplier. B. self-correcting property. C. short-run equilibrium property. D. long-run equilibrium property.
Data confirms that the quantity theory of money:
A) holds only in the short run. B) holds in the long run. C) holds both in the long run and the short run. D) does not hold either in the short run or in the long run.
An increase in _________ will shift the budget line to the right.
a. supply b. capital c. resources d. demand e. income
Suppose a small economy produces only MP3 players. In year 1, 10,000 MP3 players are produce and sold at a price of $100 each. In year 2, 12,000 MP3 players are produced and sold at a price of $80 each. Which of the following statements is true?
A. Real GDP and nominal GDP both increase B. Real GDP increases while nominal GDP remains constant C. Real GDP decreases while nominal GDP increases D. Real GDP increases while nominal GDP decreases