If the Durbin-Watson Statistic Is 2,we Can Conclude That

question 18

Multiple Choice

If the Durbin-Watson statistic is 2,we can conclude that:

• A) there is no serial correlation.
• B) the error terms have constant variances.
• C) there is negative serial correlation.
• D) there is positive serial correlation.
• E) there is multicollinearity.

Identify factors that explain the slope of the aggregate demand curve.

Recognize the implications of consumer sentiment on aggregate demand and output.

Distinguish between monetary and fiscal policy.

Explain how fiscal policy affects the economy in both the short and long run.

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Definitions:

Compound Interest

Interest for a loan or deposit that includes calculations on the original principal amount as well as the interest accumulated from earlier periods.

Decimal Multiplication

A mathematical operation involving the multiplication of numbers represented in decimal form.

Compound Interest

Calculating interest by including both the original principal amount and the interest that has been piled up from former periods.

Exponential Functions

Mathematical functions describing growth or decay at rates proportional to the value of the function at any point in time.