The random walk model is an example of a
A) deterministic trend model.
B) binomial model.
C) stochastic trend model.
D) stationary model.
Answer: C) stochastic trend model.
Economics
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Which of the following is a tool that is used by the Fed to control the quantity of money?
A) open market operations B) excess reserves C) government expenditure multiplier D) real interest rate
Economics
The above figure shows Bob's utility function. He currently has $100 of wealth, but there is a 50% chance that it could all be stolen. Bob's expected wealth is
A) $0. B) $50. C) $75. D) $100.
Economics