Suppose in 2003, President Bush and the Congress made consumer credit harder to obtain. This would have the effect of

a. shifting the investment curve up
b. shifting the investment curve down
c. shifting the consumption curve up
d. shifting the consumption curve down
e. increasing the level of investment


D

Economics

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A price support on milk is not in the interest of milk drinkers, so why do elected public officials successfully implement milk price supports?

A) Milk price supports are in the public interest. B) A small number of households (dairy farmers) gain a great deal, while the costs of the support program is spread among millions of other (milk drinking) households. C) Dairy farmers are selfish. D) Milk drinkers are generally unselfish.

Economics

If the government wishes to increase GDP by $1,200b, and the MPC is 0.75, it should:

A. increase its spending by $300b. B. decrease its spending by $300b. C. increase its spending by $900b. D. decrease its spending by $900b.

Economics

The instrumental variables in the two stage least squares estimation method consists of endogenous variables appearing in either equation.

Answer the following statement true (T) or false (F)

Economics

If the Breusch-Pagan Test for heteroskedasticity results in a large p-value, the null hypothesis of homoskedasticty is rejected.

Answer the following statement true (T) or false (F)

Economics