A positive economic statement
a. contains personal and social value judgments
b. is always a mathematical expression
c. is never used by an economist
d. is proper, provided the advocator is clear the position rests on personal assessment
e. is an unbiased report of the facts of the economy
E
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In the Keynesian theory of money demand,
a. the velocity of money is constant. b. the marginal propensity to hold money is constant. c. money is held in part because it is an asset. d. interest rates are fixed. e. none of the above.
Having more relevant instruments
A) is a problem because instead of being just identified, the regression now becomes overidentified. B) is like having a larger sample size in that the more information is available for use in the IV regressions. C) typically results in larger standard errors for the TSLS estimator. D) is not as important for inference as having the same number of endogenous variables as instruments.