Time Fixed Effects regression are useful in dealing with omitted variables
A) even if you only have a cross-section of data available.
B) if these omitted variables are constant across entities but vary over time.
C) when there are more than 100 observations.
D) if these omitted variables are constant across entities but not over time.
Ans: B) if these omitted variables are constant across entities but vary over time.
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Which of the following is the definition of autonomous consumption spending?
a. The effect of a change in wealth on consumption spending b. The part of consumption spending that is independent of disposable income c. The impact of disposable income on consumption spending d. The part of consumption spending that is independent of wealth e. The horizontal intercept of the consumption function
Refer to the information provided in Figure 2.4 below to answer the question(s) that follow.
Figure 2.4According to Figure 2.4, as the economy moves from Point B to Point D, the opportunity cost of motorcycles, measured in terms of hybrid cars,
A. increases B. remains constant. C. initially increases, then decreases. D. decreases.