Autocorrelation of the error terms
A) makes it impossible to calculate homoskedasticity only standard errors.
B) causes OLS to be no longer consistent.
C) causes the usual OLS standard errors to be inconsistent.
D) results in OLS being biased.
Answer: C
You might also like to view...
When the production of a good generates external costs, a firm's private supply curve will be
A. vertical. B. horizontal. C. to the left of the social supply curve. D. to the right of the social supply curve.
In 2017, corporate profits were about ____ percent of national income.
A. 7.2 B. 12.6 C. 25.3 D. 44.1
If interest rates are rising in an economy, what might the relationship be between savings and investment that is causing this to happen?
a) Savings is greater than investment demand. b) Investment demand is greater than savings. c) Savings and investment are both rising rapidly. d) Savings and investment are both falling rapidly.
The supply curve is upward sloping because of
A) increasing marginal cost. B) decreasing marginal benefit. C) decreasing marginal cost. D) increasing marginal benefit. E) increasing total cost.