In the following equation, gdp refers to gross domestic product, and FDI refers to foreign direct investment.
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log(gdp) = 2.65 + 0.527log(bankcredit) + 0.222FDI
(0.13) (0.022) (0.017)
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Which of the following statements is then true?
A. If gdp increases by 1%, bank credit increases by 0.527%, the level of FDI remaining constant.
B. If bank credit increases by 1%, gdp increases by 0.527%, the level of FDI remaining constant.
C. If gdp increases by 1%, bank credit increases by log(0.527)%, the level of FDI remaining constant.
D. If bank credit increases by 1%, gdp increases by log(0.527)%, the level of FDI remaining constant.
Answer: B
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The Kremerian model on population growth:
a. contradicts the Thomas Malthus claim that higher population growth rate causes poverty. The model suggests that poverty causes population growth, and not the other way around. b. provided additional empirical support to Thomas Malthus' claim that higher population growth rate causes poverty. c. contradicts the Thomas Malthus claim that higher population growth rate causes poverty. The model suggests that world population growth and poverty are completely unrelated. d. contradicts the Thomas Malthus claim that higher population growth rate causes poverty. The model suggests that world population growth is a key driver of advancing economic prosperity.
Ways to "game" the budgeting process include
a. delaying sales if just short of a target b. accelerating expenses if just short of a target c. accelerating sales once a target is met d. accelerating expenses costs once a target is met