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Describe a situation where the presence of multicollinearity would not necessarily be a bad thing. Explain your rationale.
Describe a situation where multicollinearity would definitely be a bad thing and recommend remedial measures for the situation in question (drawing from what you found in the e-Activity).
Use the Internet to identify and research a recent economic issue that resulted from multicollinearity.( e-Activity).
Let aggregate consumption be given by: C = 10 + 2(Y-T), where Y is aggregate income and T is total taxes paid such that Y-T is disposable income. Should the consumption function depend on the real interest rate? Why or why not?
Which of these has the least elastic demand? If total revenue rises when price is raised, demand. The effect on the market for heating oil of a leftward shift of supply would be. A drop in the price of oil will result in
a firm should hire a person as long as her marginal revenue product is greater than her marginal cost to the company.
After two quaters of increasing levels of production, the CEO of Canadian Fabrication and Design was upset to learn that, during this time of expansion, productivity of the newly hired sheet metal workers declined with each new worker hired. Which y..
A recent industry report concluded that the global demand for the good X is expected to increase. Based on the demand projections given in the report Colaba, a firm that produces and sells X, is contemplating hiring more labor to increase production...
In March 2011 Chu, at age 50, decides to retire. As part of his employment contract with Computers Pty Ltd, Chu had agreed that he will not compete against the company in New South Wales for two years.
Explicates how every of these public polices involves demand for cigarettes by teenagers.
How Farmer jones carrots and buys beets. His income eLasticity of demand for both carrots and beets is posotive.an increase in the price of carrots causes him to.
if you were asked to forecast Jan also Feb sales for next year, would you be confident of your forecast using the preceding moving averages.
"The term investment, as used by economists, refers to the purchase of bonds and shares of stock." "The demand for money does not depend on the interest rate because only bonds earn interest." What is this person’s demand for money when the interest ..
Consider the bond market. Show graphically and explain how a reduction in expected inflation would affect bond prices, quantities traded and yield.
Growth rates of per capita GDP: Compute the average annual growth rate of per capita GDP in the each of the cases below. The levels are provided for 1980 and 2010, measured in constant 2005 dollars.
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