The key to present value calculations is that they
A) are appropriate only for funds in the same time period.
B) provide a common unit for measuring funds at different times.
C) provide accurate answers only in a low-inflation environment.
D) provide accurate answers only in a high-inflation environment.
B
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If money is superneutral,
A) a one-time change in the money supply has no real impact. B) a one-time change in the money supply has a real impact. C) a change in the money growth rate has no real impact. D) a change in the money growth rate has a real impact.
The notation for panel data is (Xit, Yit), i = 1, ..., n and t = 1, ..., T because
A) we take into account that the entities included in the panel change over time and are replaced by others. B) the X's represent the observed effects and the Y the omitted fixed effects. C) there are n entities and T time periods. D) n has to be larger than T for the OLS estimator to exist.