In the probit model Pr(Y = 1 = ?(?0 + ?1X), ?
A) is not defined for ?(0).
B) is the standard normal cumulative distribution function.
C) is set to 1.96.
D) can be computed from the standard normal density function.
Answer: B
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Checking deposits are
A) not part of money. B) part of money. C) small in volume relative to currency in circulation. D) quite different from checking accounts.
When discussing pass through effects, it is fair to say
A) that the degree of pass through varies across nations, time and industries. B) that the degree of pass through varies across nations. C) that the degree of pass through varies across time and industries. D) that the degree of pass through varies across industries.
In the ISLM framework a contractionary fiscal policy causes aggregate output to ________ and the interest rate to ________, everything else held constant
A) increase; increase B) increase; decrease C) decrease; decrease D) decrease; increase
Suppose consumer confidence declines and as a result, consumer spending decreases by $4 billion dollars
Other things equal, if households spend $0.75 of each extra dollar of income and save the remaining $0.25, by how much will spending decrease during the third round through the circular flow? A) $1 billion B) $2.25 billion C) $3 billion D) $4 billion