Changing the Unit of Measurement of Any Independent Variable, Where

question 17

Multiple Choice

Changing the unit of measurement of any independent variable, where log of the dependent variable appears in the regression:

• A)affects only the intercept coefficient.
• B)affects only the slope coefficient.
• C)affects both the slope and intercept coefficients.
• D)affects neither the slope nor the intercept coefficient.

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Definitions:

Treasury Notes

Short- to medium-term debt obligations issued by a national government with fixed interest rates and maturities ranging from one to ten years.

Federal Reserve System

The central banking system of the United States, responsible for monetary policy, regulation of member banks, and ensuring stability of the financial system.

District Banks

Banks that are part of a larger Federal Reserve System in the United States, responsible for overseeing the monetary policy and banking regulations in their specific district.

Federal Reserve District Banks

The 12 regional banks in the Federal Reserve System which oversee and regulate banking institutions within specific geographic areas of the US.