THE NEXT QUESTIONS ARE BASED ON THE FOLLOWING INFORMATION

question 48

Multiple Choice

THE NEXT QUESTIONS ARE BASED ON THE FOLLOWING INFORMATION:
Consider the following model: Y = β₀ + β₁X_1t + β₂X_2t + γ₃Y_t-1.Using a sample of 36 months,we estimate this model and obtain the following results: y_t = 1.33 + 17.6x_1t + 0.94x_2t + 0.39Y_t-1
-What value would we typically expect for γ₃?

• A)0 < γ < 1
• B)-1 < γ < 1
• C)γ > 1
• D)γ > 0

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