Identify and describe each step of the five-step process outlined in the textbook for building and testing theories
The first step in building and testing theories for economists is to make an observation or have a thought. This then leads to the second step which is to ask a question based on the observation. The third step involves building a theory to try to answer the question. Step four involves making predictions based on the theory. The final step is to test the theory by gathering and analyzing data.
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If the quality and quantity of schooling for minorities increases, educational attainment will continue to be rewarded at the current rate
Indicate whether the statement is true or false
QE3 followed QE2 and Operation Twist. Which of the following best explains how QE3 differed from the other two in order to make it more effective?
A. QE3 promised a much larger expansion of reserves. B. QE3 gave a much stronger forward commitment as to when the policy would be complete. C. QE3 carried much more force in getting banks to lend reserves. D. QE3's completion was tied to economic objectives, rather than specific dates.