Expectations about future profitability
A) only affect the level of investment and GDP in the future.
B) only affect the level of investment in the future, but can affect the level of GDP in the present.
C) can affect the level of investment and GDP in the present.
D) only affect the level of GDP in the future, but can affect the level of investment in the present.
C
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If the functional form of the conditional variance function is incorrect, then
A) the standard errors computed by WLS regression routines are invalid B) the OLS estimator is biased C) instrumental variable techniques have to be used D) the regression R2 can no longer be computed
If a decrease in the price of a good causes a rightward shift of the demand curve for that good, then it is an inferior good
a. True b. False