The likelihood ratio statistic is given by:

A. LR = (log-likelihoodunrestricted + log-likelihoodrestricted)
B. LR = 2 × (log-likelihoodunrestricted + log-likelihoodrestricted)
C. LR = (log-likelihoodunrestricted- log-likelihoodrestricted)
D. LR = 2 × (log-likelihoodunrestricted- log-likelihoodrestricted)

Answer: D

Economics

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A financial innovation, such as the introduction of money market mutual funds, which increases the liquidity of alternatives to money, would

A. increase money demand, shifting the LM curve up and to the left. B. increase money demand, shifting the LM curve down and to the right. C. decrease money demand, shifting the LM curve up and to the left. D. decrease money demand, shifting the LM curve down and to the right.

Economics