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 expected increase in the dependent variable in time period (t + 1) ?

A) β₁γ
B) β₁γ³
C) β₁γ²
D) β₁ + β₀