DSE 2013 Answer Key is posted

[Amit Goyal]

Here is the link to the answer key:
DSE 2013 Answer Key

[akanksha]

thanku sir :)
but how come the ans in 33q is e) N 1-r/ (1+r)^2
there is no such option ?

[Amit Goyal]

Hi Akanksha,

Actually, none of the given options is correct for this problem. So, I provided the correct answer listing it as option (e).

Amit

[The Villain]

Thank You Amit Sir :-)

[Nupur]

Sir, when we are faced with such a question in exam where none of the options seem correct we do get marks for leaving it blank, right?? We obviously don't take a guess in DSE but in other exams if we guess and mark an option which looks relatively closer to the answer we're getting, will we lose marks for answering a question which was supposed to be left blank in such a case?

Amit Goyal wrote

Hi Akanksha,

Actually, none of the given options is correct for this problem. So, I provided the correct answer listing it as option (e).

Amit

[Dreyfus]

Amit Sir, in ques32, if x1=1/2 then x2=1-(1+r)*1/2
And if r= 1/ß-1 then x2=1-1/2ß
And if ß<1/2, x2 will be negative ! Then why are we not considering this?
Please help me Sir....

[neha 1]

pls explain ques 24

[kangkan]

Thanks a lot sir :)

[kangkan]

@vaibha..for 54..C=0.25 and res=0.2  hence money multiplier is 2.77 right?....so the increase in money supply comes to 5555 right..then where am i going wrong? please help

[Dreyfus]

@kangkan....the multiplier is 2.509...

[akanksha]

HOW DID U FIND THE MULTIPLIER VAIBHAV..I M ALSO GETTING 2.77

[akanksha]

Sir
can you plz explain q 32 and 33

[Granpa Simpson]

In Question number 54, C=0.25x, D=0.75x, and R/D=0.20, also C/D=0.25/0.75, now money multiplier=(C/D+1)/(C/D+R/D)=[(0.25/0.75)+1)/(0.25/0.75)+0.20)]=0.25...so increase in money supply=2000*2.5=5000 units.

[kangkan]

@subhyana..able and bernanke defines Cash reserve ratio as Reserve/Deposit and Currency Deposit ratio as Currentcy /Depsoit...Now accd to this book money multiplier is Cu/Dep+1/  Cu/Dep + Res/Dep.... isnt Cu/Dep=0.25 and and Res/Dep= 0.20 right?

[Granpa Simpson]

R/D is 0.20...but C/D is 0.25/0.75..this is because if x is total money in circulation then according to the question the amount people hold as currency is 25% of x=0.25*x, similarly D=0.75*x..so C/D=0.25/0.75..!!!!!

[kangkan]

so there is a diff between cash and currency?

[Granpa Simpson]

Consider in this way..people hold 25% of the total money in circulation as cash/currency and 75% as demand deposits...in this case Cu=0.25*x and D=0.75*x..so Cu/D=0.25/0.75..it remains the same...!!!!

[kangkan]

Hi

Question 49:Heteroskedascity

Accd to the big formula in gujrati(Appendix of chapter 11 page 434),the estimated vale of Sigma Hat is an unbiased estimator of sigma regardless of its relation to X(i)...but accd to answer key of of Amit Sit,it is option C...am i interpretting the the result wrongly?

[Granpa Simpson]

The OLS estimates will be unbiased in case of heteroscedasticity..also the estimated standard error terms will be unbiased..this is because the standard error terms will be biased if there is Multicolinearity...in that case the standard error will be infinite and the estimated coefficients will be indeterminate..so unbiasedness of standard error is related to Multicolinearity i guess..!!!

[kangkan]

@subhyana..page 396 gujrati says that var (B hat) will be a biased estimator of B in presence of heterosckedasicity :(