You can determine the lag lengths in a VAR
A) by using confidence intervals.
B) by using critical values from the standard normal table.
C) by using either F-tests or information criteria.
D) with the help from economic theory and institutional knowledge.
Answer: C
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A marketable permit
A) allows firms to pollute all they want without any cost. B) allows firms to buy and sell the right to pollute at government controlled prices. C) eliminates pollution by setting the price of pollution permits above the marginal cost of polluting. D) allows firms to buy and sell the right to pollute. E) is the Coase theorem solution to pollution.
Assume that Jamal is a single parent who is in poverty. He receives food stamps and Medicaid. For every $100 that he earns, Jamal loses $35 in food stamps and $20 in Medicaid benefits. Also, Jamal's income is taxed at a rate of 10%. Then, Jamal's total tax rate is
a. 45 percent b. 55 percent c. 65 percent d. 70 percent