The random walk model is an example of a
A) deterministic trend model.
B) binomial model.
C) stochastic trend model.
D) stationary model.
Answer: C) stochastic trend model.
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Suppose you are offered a new smartphone in exchange for thirty hours of your work in your friend's garden. This is an example of
A) money as a standard of deferred payment. B) barter. C) money as a medium of exchange. D) money as a store of value.
Why are private enterprises more efficient than government enterprises?
What will be an ideal response?
Based on this model, it is apparent that there is a
Use thefollowing information for any or all of Questions 16 through 18. Suppose the marginal benefits and marginal costs of tire production in the U.S. are modeled as follows, where Q is in millions: MSB = 12 – 0.4Q MPB = 12 – 0.3Q MSC = MPC = 2 + 0.1Q a. negative production externality b. positive external benefit c. consumption externality measured as MEB = – 0.1Q d. negatively sloped MEC function
The minimum amount of reserves a bank must hold with the Federal Reserve to back up its deposits is called a(n)
A. excess reserve. B. time deposit. C. demand deposit. D. reserve requirement.