Suppose You've Regressed Profits Across Stores (I) in Indiana and Michigan

Multiple Choice

Suppose you've regressed profits across stores (i) in Indiana and Michigan over two years (t) on an Indiana dummy variable as well as on an interaction between an Indiana dummy variable and Year 2 dummy variable. Thus, your regression equation is: Profits_it = β₀ + β₁Indiana_it + β₂Year2_it Indiana_it + U_i. What is the marginal effect of a store being in Indiana based off this regression equation?

A) β₀ + β₁ + β₂
B) β₁ + β₂ × Year2_it
C) β₀ + β₁
D) β₂