For the polynomial regression model,
A) you need new estimation techniques since the OLS assumptions do not apply any longer.
B) the techniques for estimation and inference developed for multiple regression can be applied.
C) you can still use OLS estimation techniques, but the t-statistics do not have an asymptotic normal distribution.
D) the critical values from the normal distribution have to be changed to 1.962, 1.963, etc.
Answer: B) the techniques for estimation and inference developed for multiple regression can be applied.
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The monetary approach basically looks at as the fundamental variable affecting exchange rates.
a. interest rates; short-run b. interest rates; long-run c. the price level; short-run d. the price level; long-run
Which of the following describes the degree of control that the Fed has over the money supply?
A) The Fed has substantial control over the money supply. B) The Fed has absolute control over the money supply. C) The Fed has no control of the money supply. D) The Fed is not concerned about the level of the money supply, and does not attempt to control it.