Which of the following will tend to occur when the interest rate increases?
A) The demand for money curve shifts leftward.
B) The demand for money curve shifts rightward.
C) There is a rightward movement along the demand for money curve.
D) There is a leftward movement along the demand for money curve.
D
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Randomized sampling is not feasible in many policy studies, so researchers turn to different strategies to estimate causality from observational data. One such approach is difference-in-differences (DiD). Which of the following statements best describes DiD?
a. DiD is the only approach that uses data from individuals in both groups that are exposed to the treatment. b. DiD is a hybrid approach that utilizes a cross-section of individuals across time to measure differences. c. DiD uses differences in individual characteristics to divide the data into two groups. d. The convenient feature of DiD is that the two groups do not need to experience similar trends in the outcome variable during the pretreatment time period.