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THE NEXT QUESTIONS ARE BASED ON THE FOLLOWING INFORMATION

Question 29

Multiple Choice

THE NEXT QUESTIONS ARE BASED ON THE FOLLOWING INFORMATION:
Consider the following model: Y = β0 + β1X1t + β2X2t + γ3Yt-1.Using a sample of 36 months,we estimate this model and obtain the following results: yt = 1.33 + 17.6x1t + 0.94x2t + 0.39Yt-1
-If X1 were to increase by 1-unit in time t,by how much would we expect Y to change in period (t + 1) ?


A) 17.6
B) 14.94
C) 6.86
D) 10.73

Correct Answer:

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