A larger error variance makes it difficult to estimate the partial effect of any of the independent variables on the dependent variable.

The largest item in the government's poverty program is

a. cash aid b. medical benefits c. food stamps d. housing benefits e. jobs and training programs

Policy directives issued by the Fed to moderate swings in the business cycle are

a. countercyclical fiscal policy b. channeled through the Treasury Department c. countercyclical monetary policy d. first approved by the appropriations committees of the U.S. House of Representatives and the Senate e. federal funds activity