Monetarists' Preference for Reduced-Form Models Is Based on Their Belief

question 2

Multiple Choice

Monetarists' preference for reduced-form models is based on their belief that

• A)reverse causation is a problem.
• B)structural models may understate money's effect on economic activity.
• C)money supply changes are always endogenous.
• D)monetary policy affects only investment spending.

Understand the identification and impact of outliers in a dataset.

Understand the influence of myths and common beliefs on public perception.

Comprehend the characteristics of a useful theory.

Grasp probability principles and their application to real life contexts.