Consider the Model: Y_t = ₀ + ₁z_t1

question 1

Multiple Choice

Consider the model: y_t = ₀ + ₁z_t1 + ₂z_t2 + u_t. Under weak dependence, the condition sufficient for consistency of OLS is:

• A)E(z_t1|z_t2) = 0.
• B)E(y_t |z_t1, z_t2) = 0.
• C) E(u_t |z_t1, z_t2) = 0.
• D) E(u_t |z_t1, z_t2) = .

---

Definitions:

Adjusting Entry

A journal entry made at the end of an accounting period to allocate income and expenditure to the correct period.

Interest Income

Income earned from investments, savings, or credit extended, such as interest on bonds, savings accounts, or loans provided to others.

Interest Accrued

The amount of interest that has been earned or incurred but has not yet been paid or received.

Note Paid

Represents the full repayment or settlement of the amount owed as denoted in a promissory note.