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1. Despite the positive correlation coefficient between A and B, the regression of A on B has a negative slope. Could this situation occur? Explain why or why not.
2. In an analysis of the SAT data, 1,000 is mistakenly added to every math score. For example, a Math score of 650 becomes 1650. What impact will this have on the slope coefficient in a bivariate regression of Math SAT on Verbal SAT as compared with the slope coefficient from the same biavariate regression using the original correct data? What impact will this mistake have on the slope coefficient in the regression of Verbal SAT on Math SAT? Explain your reasoning.
Suppose government purchases amount is $3.5 trillion, transfer payments amount is $0.5 trillion, net interest payments are $0.25 trillion and tax revenue is valued at $2 trillion. Calculate the amount of the government deficit;
a. use the theory of liquidity preference to illustrate in a graph, the impact of this policy on the interest rate. b. use the model of aggregate demand and aggregate supply to illustrate the impact of this change in the interest rate on output and..
Given its vast financial resources, firm A is risk neutral. Should firm A undertake the $200 million R&D effort?
Desscribe some of the trade-offs faced
The real rate of growth of the US economy is, on average, about 2.5 % annually. The Chinese economy grows, on average, at a rate of 8.5 %. According to World Bank data in 2011 the GDP of the United States and China was 14.99 and 7.31 trillion doll..
a researcher predicts that watching a film on institutionalization will change students attitudes about chronically
How are market price, average revenue, and marginal revenue related for a perfectly competitive firm and why?
Find out the breakeven output and total sales revenues. Estimate the output that would generate total profit of 60,000 and total sales revenue at that output level.
The price of good 1 (nuts) is $2 and the price of good 2 (berries) is $1. How many units of nuts will Anthony demand?
According to the rational-expectations approach, if everyone believes that policy-makers are committed to reducing inflation, the cost of reducing inflation- the sacrifice ratio-will be lower than if the public is sceptical about the policymakers' in..
consider an economy that produces only two goods fresh apricots and dried apricots. in this economy the technology of
Find the future value of $10,000 invested now after five years if the annual interest rate is 8 percent. What would be the future value if the interest rate is a simple interest rate? What would be the future value if the interest rate is a compound ..
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