Indicate for which of the following examples you cannot use Entity and Time Fixed Effects: a regression of
A) OECD unemployment rates on unemployment insurance generosity for the period 1980-2006 (annual data).
B) the (log of) earnings on the number of years of education, using the Current Population Survey of 60,000 households for March 2006.
C) the per capita income level in Canadian Provinces on provincial population growth rates, using decade averages for 1960, 1970, and 1980.
D) the risk premium of 75 stocks on the market premium for the years 1998-2006.
Answer: B) the (log of) earnings on the number of years of education, using the Current Population Survey of 60,000 households for March 2006.
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Suppose that the banking system currency has no excess reserves and that a bank receives a deposit into a checking account of $10,000 in currency
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