THE NEXT QUESTIONS ARE BASED ON THE FOLLOWING INFORMATION

question 156

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
-If X₁ were to increase by 1-unit in time t,by how much would we expect Y to change in period t?

• A)17.6(0.39)
• B)17.6 + 1.33
• C)17.6 - 0.39
• D)17.6

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