73. Both a pre-requisite and a co-requisite to long-term economic growth is: (a) contraction of the money supply; (b) rising expectations for business earnings; (c) a marginal propensity to consume close to zero; (d) a balanced federal budget.

74. Perhaps the most fundamental relationship in all of economics is which of the following? (a) spin rates and curve balls; (b) human capital accumulation and the performance of the VIX index; (c) real disposable income and personal consumption expenditures; (d) money supply growth and in-flow of immigrants.

75. When increases in the money supply are said to have no lasting impact upon the level and composition of output, we say that money is: (a) neutral; (b) inflationary; (c) green; (d) transitory.

76. According to Keynes's "liquidity preference theory," interest is: (a) the ability to stay awake in your economics class; (b) a reward for saving; (c) a reward for surrendering liquidity temporarily; (d) a moral source of income to lenders.

Let X1, ...., X100 ~ Exp(B) (i.e., the X; have density f(x) = e-x/P/B). Let 100 1 X 100 E Xi i=1 (a) Use the Central Limit Theorem to provide an approximate distribution for X. (b) Determine P(|X - B| 3.1).The Central Limit Theorem says the sampling distribution of the sample mean is approximately normal under certain conditions. Which ofthe following is a necessary condition for the Central Limit Theorem to be used? O A. The sample size must be large (e.g., at least 30). O B.The population size must be large (e.g., at least 30). O C.The population from which we are sampling must not be normally distributed. Question 16 (1 point) If five hundred confidence intervals, each having a level of confidence of 90%, were computed for a population mean / , approximately how many of the intervals would be expected to contain / ? 475 450 555.56 0.0018 Question 17 (1 point) A population is bimodal. A sample of size 39 is taken from this population. The distribution of sample means is approximately normal. What "idea" allows us to know this? Axioms of Probability Law of Large Numbers Fundamental Theorem of Calculus Central Limit Theorem