If Congress wanted to counteract the effects of a recession it could
A) increase government purchases. B) increase tax rates.
C) increase taxes by a fixed amount. D) decrease defense spending.
A
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As a result of the financial crisis, checkable deposits:
A) became a smaller portion of overall liabilities B) experienced little change C) hit a new record high in terms of the percent of liabilities D) nearly doubled in terms of the percent of liabilities
Which of the following correctly identifies a limitation of logarithmic transformation of variables?
A. Taking log of variables make OLS estimates more sensitive to extreme values in comparison to variables taken in level. B. Logarithmic transformations cannot be used if a variable takes on zero or negative values. C. Logarithmic transformations of variables are likely to lead to heteroskedasticity. D. Taking log of a variable often expands its range which can cause inefficient estimates.