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lnQt=a+blnPt+clnGDPt\ln Q _ { t } = a + b \ln P _ { t } + c \ln G D P _ { t }

Question 21

Multiple Choice

lnQt=a+blnPt+clnGDPt\ln Q _ { t } = a + b \ln P _ { t } + c \ln G D P _ { t }
One of the advantages of using the following function in estimation is


A) problems with multicollinearity will be eliminated.
B) problems with heteroscedasticity will be eliminated.
C) the estimated slope coefficients are all elasticities.
D) None of the above is correct.

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