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Suppose your state announced that it would provide free tuition to high achieving stuents graduating from high school starting in 2016. You decide to see whether this new porgam induces families with high achieving children graduating in 2016 or later to purchase new cars. To test you findings, you use a “falsification exercise”, you observe the new car purchasing behavior of families with children graduating in 2015. Why is this a useful exercise?

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Financial Management, Finance

Category:- Financial Management
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