The TSLS Estimator Is

question 2

Multiple Choice

The TSLS estimator is

• A)consistent and has a normal distribution in large samples.
• B)unbiased.
• C)efficient in small samples.
• D)F-distributed.

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Definitions:

Nominal Interest Rate

The stated rate of interest on a financial instrument, not accounting for the compounding effect or inflation.

Inflation Rate

The elevation in the percentage cost of goods and services across an economy over an established period.

Relative-price Variability

Fluctuations in the price of one good or service in relation to others, affecting purchasing decisions and economic equilibrium.

Inflation Rate

A measure of how quickly the cost of goods and services rises, thereby reducing the purchasing power.