Interpreting the intercept in a sample regression function is
A) not reasonable because you never observe values of the explanatory variables around the origin.
B) reasonable because under certain conditions the estimator is BLUE.
C) reasonable if your sample contains values of Xi around the origin.
D) not reasonable because economists are interested in the effect of a change in X on the change in Y.
Ans: C) reasonable if your sample contains values of Xi around the origin.
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If the annual interest rate is 8%, what would you expect to pay for a bond paying a lump sum of $10,000 in ten years?
A) $4,632 B) $9,259 C) $10,000 D) $21,589
The broadest indication of economy-wide inflation is captured by the
A) Consumer Price Index. B) Gross Domestic Product (GDP) deflator. C) Producer Price Index. D) Personal Consumption Expenditure Index.