banks make additional loans when required
What will be an ideal response?
are less than actual reserves a situation of positive excess reserves
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In the case of the simple regression model Yi = ?0 + ?1Xi + ui, i = 1, …, n, when X and u are correlated, then
A) the OLS estimator is biased in small samples only. B) OLS and TSLS produce the same estimate. C) X is exogenous. D) the OLS estimator is inconsistent.
If carpentry positions A and B required identical skill levels, other things constant, which one of the following would most likely elevate the wage rate of position A relative to position B?
a. Position A offers steady employment, whereas employees holding position B are often laid off. b. Position A offers more sick leave and more paid holidays. c. The work place of position A is in the intense heat of the sun, whereas the work place of B is air-conditioned. d. Position A is a safe office job; position B requires the employee to operate a dangerous saw.
Suppose an oil refinery and a paper mill both pollute a river. Under a system of marketable pollution permits, which of the following must be true in order for both companies to benefit from trading the right to pollute?
A. They must be able to reduce pollution at exactly the same cost. B. It must cost the firms different amounts to reduce pollution. C. They must have a social conscience and must be devoted to pollution abatement. D. The government must direct them toward beneficial trades.
Indifference curves can never cross on a preference map.
Answer the following statement true (T) or false (F)