If Demand Is Estimated Using the Empirical Specification $\ln Q = \ln a + b \ln P + c \ln M + d \ln P _ { R }$

question 29

Multiple Choice

If demand is estimated using the empirical specification $\ln Q = \ln a + b \ln P + c \ln M + d \ln P _ { R }$ ,then an equivalent expression for demand is

• A) \(\ln Q = a + b P + c M + d P _ { R }\) .
• B) \(Q = a + b P + c M + d P _ { R }\) .
• C) \(Q = e ^ { a } + b P + c M + d P _ { R }\) .
• D) \(Q = a b P c M d P _ { R }\) .
• E)none of the above

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Definitions:

Capital Account

Represents the net change in physical or financial asset ownership for a nation and includes investments and loans into or out of the country.