The 95% confidence interval for the dynamic multipliers should be computed by using the estimated coefficient ±
A) 1.96 times the RMSFE.
B) 1.96 times the HAC standard errors.
C) 1.96, since the HAC errors are standardized.
D) 1.64 times the HAC standard errors since the alternative hypothesis is one-sided.
Answer: B
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The cross-price elasticity of demand measures the
A) percentage change in the quantity demanded of one good in one location divided by the price of the same good in another location. B) absolute change in the quantity demanded of one good divided by the absolute change in the price of another good. C) percentage change in the quantity demanded of one good divided by the percentage change in the price of another good. D) percentage change in the price of one good divided by the percentage change in the quantity demanded of another good.
A fall in the relative prices of a country’s exports tends to ________________ that country’s net exports, and thereby, to ____ its real GDP.
A. increase; raise B. decrease; raise C. decrease; decrease D. None of the above is correct.