Please List and Give a Short Description of the Two

question 19

Essay

Please list and give a short description of the two sources of randomness in the coefficient estimates.

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Definitions:

Private Investment

The expenditure on capital goods by private sector firms or individuals in order to generate future income or profits, excluding government spending.

Crowding-In Effect

An increase in private sector spending stimulated by federal budget deficits financed by U.S. Treasury borrowing.

Private Investment

Expenditures by private sector entities on capital goods that are used to produce goods or services in the future.

Government Spending

The total of all public sector expenditures, including public goods and services provided, and investments made by government agencies.