,The Simultaneity Problem Refers to

question 26

Multiple Choice

,the simultaneity problem refers to

• A) the possible correlation between openness and financial reform
• B) the time lag between increasing openness and its effect on GDP per capita
• C) the possibility that GDP influences openness at the same time that openness affects GDP
• D) the fact that cross-country data may not be available for the same years
• E) the likely correlation between the error terms associated with successive observations

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Definitions:

Trade Discounts

Reductions in price given by sellers to buyers in the commercial transactions, typically based on volume or frequency of orders.

Net Price

The final price after all discounts, rebates, and deductions have been applied, but before taxes and additional fees.

Complement Rate

In finance, it usually refers to the difference between 100% and the given rate of interest, used to calculate discount or markup rates.

Net Price

The final price after any discounts, rebates, or other deductions have been applied.