Unit root tests
A) use the standard normal distribution since they are based on the t-statistic.
B) cannot use the standard normal distribution for statistical inference. As a result the ADF statistic has its own special table of critical values.
C) can use the standard normal distribution only when testing that the level variable is stationary, but not the difference variable.
D) can use the standard normal distribution but only if HAC standard errors were computed.
Answer: B
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Why did the United States suspend its preferential trade treatment for Bangladesh in 2013?
a. The United States wanted to collect more tariff revenue on all imports from Bangladesh. b. The United States wanted to punish Bangladesh for its poor labor practices. c. The United States wanted to collect more tariff revenue on imports other than garments from Bangladesh d. The United States wanted to force Bangladesh to join NAFTA.
If wealth increases, the demand for stocks ________ and that of long-term bonds ________, everything else held constant
A) increases; increases B) increases; decreases C) decreases; decreases D) decreases; increases