A study based on OLS regressions is internally valid if
A) the errors are homoskedastic, and there are no more than two binary variables present among the regressors.
B) you use a two-sided alternative hypothesis, and standard errors are calculated using the heteroskedasticity-robust formula.
C) weighted least squares produces similar results, and the t-statistic is normally distributed in large samples.
D) the OLS estimator is unbiased and consistent, and the standard errors are computed in a way that makes confidence intervals have the desired confidence level.
Ans: D) the OLS estimator is unbiased and consistent, and the standard errors are computed in a way that makes confidence intervals have the desired confidence level.
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If the deficit is financed by selling bonds to the ________, the money supply will ________, causing aggregate demand to ________
A) public; rise; increase B) public; fall; decrease C) central bank; rise; increase D) central bank; fall; decrease
Which of the following is not a possible implication of federal budget deficits?
a. Crowding out b. Increased interest rates c. Inflation d. Increased trade deficits e. Depreciation of the dollar