Heteroskedasticity means that
A) homogeneity cannot be assumed automatically for the model.
B) the variance of the error term is not constant.
C) the observed units have different preferences.
D) agents are not all rational.
Answer: B
Economics
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According to the quantity theory of money, in the long run an increase in the quantity of money creates an increase in the price level but does not increase real GDP
Indicate whether the statement is true or false
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Wealthy professors are more likely to shop at high end stores with shorter wait times at the cashier than poor students because
a. They value the item more than the student b. They like wasting money c. The opportunity cost of waiting in a cashier line is higher for professors than for undergraduate students d. They like to show off
Economics