If the Fed lowers its target for the federal funds rate, this indicates that
A) the Fed is pursuing an expansionary monetary policy.
B) the Fed is attempting to combat inflation.
C) the Fed is pursuing a contractionary monetary policy.
D) the Fed is concerned that the growth in aggregate demand will exceed potential GDP.
A
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The linear probability model contains heteroskedasticity unless _____.
A. the intercept parameter is zero B. all the slope parameters are positive C. all the slope parameters are zero D. the independent variables are binary
Use the figure below to answer the following question.
The figure above shows three supply curves for wheat. Which of the following would cause the supply of wheat to shift from S1 to S3?
A. a tax on wheat production B. a decrease in the price of wheat C. an increase in the price of wheat D. a subsidy for wheat production