If Xt and Yt are cointegrated, then the OLS estimator of the coefficient in the cointegrating regression is
A) BLUE.
B) unbiased when using HAC standard errors.
C) unbiased even in small samples.
D) consistent.
Answer: D
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How does scarcity affect the range of possible choices that decision makers face?
A. It narrows the choice to a single option. B. It narrows the range of choices. C. It increases the possible methods for solving problems. D. It clarifies the choices by highlighting the best solutions. E. It simplifies the choices and therefore widens the range.
Refer to Table 14-4. What is the Nash equilibrium in this game?
A) Alistair increases its advertising budget, but Baine does not. B) There is no Nash equilibrium. C) Both Alistair and Baine increase their advertising budgets. D) Baine increases its advertising budget, but Alistair does not.
If a country wants to keep the value of its currency fixed, then its central bank should
A) sell domestic goods when there is an increase in the supply of its domestic currency. B) buy domestic goods when there is an increase in the supply of its domestic currency. C) sell its domestic currency when there is an increase in the supply of that currency. D) buy its domestic currency when there is an increase in the supply of that currency.
Having a chronic trade deficit is a problem, but for countries that have chronic trade surpluses, the consequences are just as problematic
Indicate whether the statement is true or false