In regression analysis, the explanatory variables
A) are always price and income.
B) are the variables whose variations are to be explained.
C) are the factors that are thought to affect the dependent variable.
D) are used to explain the random error term.
C
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Which one of the following unexpected events ignited the 2009 euro crisis?
A) Accelerating hyperinflation and political upheaval. B) The prospect of a sovereign default by one or more euro zone countries. C) Rising oil prices. D) Revolutions in Switzerland and Belgium. E) A Chinese boycott of European products.
If the economy dips into a recession
A. automatic stabilizers will cause tax receipts to fall and transfer payments to rise. B. automatic stabilizers will cause tax receipts to rise and transfer payments to fall. C. discretionary fiscal policy will generate increased transfer payments and lower tax receipts. D. discretionary fiscal policy will reduce government outlays and increase tax receipts.