Which of the following is NOT a reason that interest rates remained low despite high budget deficits following the financial crisis?
A) increased demand for U.S. government bonds
B) the perceived riskiness of alternative investments such as stocks
C) low interest rates on CDs and similar short-term assets
D) increases in expected inflation
D
Economics
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If, in response to a growing demand for food, farmers create productive acreage by draining swamps,
a. the supply curve of land will be vertical b. these new acres will generate the largest rents of all acreages c. the MRP of land will increase d. all land will earn zero rents because of competition e. differential land rents will result
Economics
Which of the following tests helps in the detection of heteroskedasticity?
A. The Breusch-Pagan test B. The Breusch-Godfrey test C. The Durbin-Watson test D. The Chow test
Economics