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Consider the Distributed Lag Model Yt = β0 + β1Xt

Question 29

Multiple Choice

Consider the distributed lag model Yt = β0 + β1Xt + β2Xt-1 + β3Xt-2 + … + βr+1Xt-r + ut.The dynamic causal effect is

A) β0 + β1
B) β1 + β2+…+βr+1
C) β0 + β1+…+βr+1
D) β1

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