In the Model Y_t = α₀ + α₁x_t1 + α₂x_t2

question 20

Multiple Choice

In the model y_t = α₀ + α₁x_t1 + α₂x_t2 + …..+ α?_kx_tk + u_t,the explanatory variables,x_t = (x_t1,x_t2 …. ,x_tk) ,are sequentially exogenous if:

• A)E(u_t|x_t,x_t-1,……)= E(u_t)= 0,t = 1,2,….
• B)E(u_t|x_t,x_t-1,……)≠ E(u_t)= 0,t = 1,2,….
• C)E(u_t|x_t,x_t-1,……)= E(u_t)> 0,t = 1,2,….
• D)E(u_t|x_t,x_t-1,……)= E(u_t)= 1,t = 1,2,….

---

Definitions:

Sells

Engages in the act of offering goods or services in exchange for money or other compensation; a rephrased definition of 'Sellers.'

Highest Amount

The maximum quantity or degree of something that is recorded, attained, or allowed.

Consumer

An individual who purchases goods or services for personal use.

Market Equilibrium

Market equilibrium occurs when the quantity demanded of a good matches the quantity supplied, leading to a stable market price where there is no tendency for it to change.