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THE NEXT QUESTIONS ARE BASED ON THE FOLLOWING INFORMATION

Question 163

Multiple Choice

THE NEXT QUESTIONS ARE BASED ON THE FOLLOWING INFORMATION:
Consider the following model: Y = β0 + β1X1t + β2X2t + γYt-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 + 2) ?


A) β1γ3
B) β1γ2
C) β1γ
D) β1 + β0

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