A Major Advantage of the ________ Production Function Is That

question 13

Multiple Choice

A major advantage of the ________ production function is that it can be easily transformed into a linear function,and thus can be analyzed with the linear regression method.

• A)cubic
• B)power
• C)quadratic
• D)None of the above

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Definitions:

Required Reserve Ratio

The fraction of deposits that banks are required to keep on hand and not lend out, as set by the central bank.

Discount Rate

The interest rate charged to commercial banks and other depository institutions on loans they receive from their regional Federal Reserve Bank's lending facility.

Required Reserve Ratio

The fraction of deposits that a bank is required by regulation to hold in reserve, either in its own vaults or with a central bank, and not lend out.

Money Supply

The sum of physical currency, demand deposits, savings, and other liquid assets in a country's economy.