The probit model
A) is the same as the logit model.
B) always gives the same fit for the predicted values as the linear probability model for values between 0.1 and 0.9.
C) forces the predicted values to lie between 0 and 1.
D) should not be used since it is too complicated.
Answer: C) forces the predicted values to lie between 0 and 1.
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If a legal ceiling price causes the quantity of a good demanded to be greater than the quantity supplied
A) competition among both buyers and sellers is prevented. B) competition among buyers is prevented. C) competition among sellers is prevented. D) competition among buyers will raise the nonmonetary costs of obtaining the good.
Which of the following is correct?
a. In a closed economy, equilibrium in the market for loanable funds occurs where saving = investment. b. Investment is the source for the supply of loanable funds. c. If there is a surplus in the market for loanable funds, the interest rate rises. d. All of the above are correct