When RBC Economists Compare the Volatility in Their Models to the Data,what

question 19

Multiple Choice

When RBC economists compare the volatility in their models to the data,what are they looking at?

• A)The degree to which variables lead output over the business cycle
• B)The strength of procyclicality of different variables
• C)The amount of random variation in economic variables
• D)The degree to which different economic variables move together

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Definitions:

Land Adjacent

Property that is next to or bordering another property.

Future Interest

A person’s present right to property ownership and possession in the future.

Present Right

The current legal ability to exercise a right or claim to property, as opposed to a future or conditional interest.

Property Ownership

The legal right to possess, use, and dispose of real estate or personal property.