A disadvantage of the proprietorship form of business organization is
A) its limited access to capital.
B) its limited liability.
C) that it can issue only one class of stock.
D) that the owner must fight a lot of red tape to form the firm.
A
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The biggest conceptual difference between using VARs for forecasting and using them for structural modeling is that
A) you need to use the Granger causality test for structural modeling. B) structural modeling requires very specific assumptions derived from economic theory and institutional knowledge of what is exogenous and what is not. C) you can no longer use the information criteria to decide on the lag length. D) structural modeling only allows a maximum of three equations in the VAR.
Figure 11-3
In Figure 11-3, which line represents the change in the consumption schedule caused by an increase in the residential property tax?
a.
C1 in graph (a)
b.
C2 in graph (a)
c.
C1 in graph (b)
d.
C2 in graph (b)