THE NEXT QUESTIONS ARE BASED ON THE FOLLOWING INFORMATION

question 29

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 + 1) ?

• A)17.6
• B)14.94
• C)6.86
• D)10.73