Ans: D) to avoid perfect multicollinearity.
In the Fixed Effects regression model, you should exclude one of the binary variables for the entities when an intercept is present in the equation
A) because one of the entities is always excluded.
B) because there are already too many coefficients to estimate.
C) to allow for some changes between entities to take place.
D) to avoid perfect multicollinearity.
Economics
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The observation that the money supply is procyclical and leading the level of aggregate economic theory is most closely associated with
A) Lucas and Friedman. B) Friedman and Schwartz. C) Kydland and Prescott. D) David Runkle.
Economics
What do American drivers on congested roads and Soviet shoppers waiting in line to purchase clothing have in common?
a. Both the American drivers and the Soviet shoppers are consuming products at prices that do not represent the full costs of the products. b. Both the American drivers and the Soviet shoppers can purchase as much as they want at the market price. c. Both the American drivers and the Soviet shoppers could avoid waiting if the prices were lowered. d. American drivers and Soviet shoppers have nothing in common.
Economics