If there is instability in the demand for commodities,
A) a monetary policy of fixed interest rates will perform better than a policy of holding the real money supply fixed.
B) a countercyclical money-supply policy will cause large swings in interest rates.
C) a fixed money supply policy will perform better than countercyclical changes in money supply.
D) a fixed money supply policy will stabilize interest rates.
B
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The United States exports
A) goods only. B) services only. C) manufactured goods only. D) goods and services. E) only agricultural products and high-tech goods.
When the R2 of a regression equation is very high, it indicates that
A) all the coefficients are statistically significant. B) the intercept term has no economic meaning. C) a high proportion of the variation in the dependent variable can be accounted for by the variation in the independent variables. D) there is a good chance of serial correlation and so the equation must be discarded.