Question
Calculate the value of VIF in case of Multicollinearity,
if the Ri2(Coefficient of auxiliary regression on independent variables) is 0.60 and the variance of the OLS estimator is 2.Solution
VIF= 1/ (1-Ri2) = 1/ (1-0.6) = 1/0.4 = 2.5
What is the optimal number of trips to bank such that cost of holding money is minimum, if the rate of interest foregone is 10% , income is 100 and the ...
In a small open economy with a floating exchange rate, the supply of real money balances is fixed and a rise in government spending ______
The foreign capital investment in India on the eve of independence concentrated on the following sectors of the economy
(i) railways
...
During the first stage of a total product curve, the total product is
What is the degree of homogeneity in case of Constant Elasticity of Substitution production function?
Which of the following is/are included while calculating the national income using the income method?
(1) Wages and salaries in cash
...
Suppose that a firm has the cost function for a plant as given below
C(w, r, q) = 0.5q(w+r)
where q is output, w is the cost of labour l a...
Consider a closed economy wherein
C = 0.8 Yd , t = 0.25 , I = 900 – 50i , G = 800, L = 0.25 Y – 62.5i , M/P = 500
Where in Yd = Di...
Which of the following is NOT a correct statement in the context of National income?
An analyst has data on wages for 100 individuals. The arithmetic mean of the log of wages is the same as: