When we estimate a regression to determine the relationship ...

[Lobcity]

When we estimate a regression to determine the relationship between changes in consumption and changes in current income, we find that
 
  A) there are no residuals.
  B) the R2 is zero.
  C) the MPC is larger than one.
  D) all of the above
  E) none of the above

Question 2

Ordinary least squares is a technique that can be used to
 
  A) identify the best model.
  B) determine which variables in a model are endogenous and which are exogenous.
  C) obtain a bar graph showing successive quarterly increases in output.
  D) obtain a line describing consumption behavior in the real world.
  E) determine the direction of causation between consumption and income.

[stallen]

Answer to Question 1

E

Answer to Question 2

D

[Lobcity]

Thanks for the timely response, appreciate it

[ktidd]

Excellent