THE NEXT QUESTIONS ARE BASED ON THE FOLLOWING INFORMATION

Multiple Choice

THE NEXT QUESTIONS ARE BASED ON THE FOLLOWING INFORMATION:
Consider the following model: Y = β₀ + β₁X_1t + β₂X_2t + γY_t-1.Suppose we increase X₁ by one unit in time period t,with all other independent variables in the model held fixed.
-What is the total expected increase in the dependent variable over time period t and all future time periods?

A) β₁ / (1 - γY_t-1)
B) 1 / (1 - γ)
C) β₁ / (1 - γ)
D) (1 - γβ₁) / (1 - γ) ^t