Having more relevant instruments
A) is a problem because instead of being just identified, the regression now becomes overidentified.
B) is like having a larger sample size in that the more information is available for use in the IV regressions.
C) typically results in larger standard errors for the TSLS estimator.
D) is not as important for inference as having the same number of endogenous variables as instruments.
Answer: B) is like having a larger sample size in that the more information is available for use in the IV regressions.
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The expenditure-based method of national accounting ________
A) only tracks the purchase of goods and services by firms B) does not track the purchase of investment goods by firms and households C) only tracks the purchase of goods and services by the government D) tracks the purchase of all goods by households, firms and the government
What, if any, is the impact of the CPI bias on government spending and taxes?
What will be an ideal response?
One In the News article is titled "CDs Not Paying Much." From this article and from reading the text, one would infer that
A. CD balances are only in M2. B. CD balances are not in M1 or M2. C. CD balances are in both M1 and M2. D. CD balances are only in M1.
When determining whether to shut down in the short run, a competitive firm should ignore (i) fixed costs. (ii) variable costs. (iii) sunk costs
a. (iii) only b. (i) and (iii) only c. (ii) only d. (i), (ii), and (iii)