The Interpretation of the Slope Coefficient in the Model Ln(Y_i)=

question 53

Multiple Choice

The interpretation of the slope coefficient in the model ln(Y_i) = β₀ + β₁ ln(X_i) + u_i is as follows:

• A)a 1% change in X is associated with a β₁ % change in Y.
• B)a change in X by one unit is associated with a β₁ change in Y.
• C)a change in X by one unit is associated with a 100 β₁ % change in Y.
• D)a 1% change in X is associated with a change in Y of 0.01 β₁.

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Definitions:

Compromise Tariff

refers to the Tariff of 1833, which was enacted to resolve the Nullification Crisis between the federal government and South Carolina by gradually reducing import duties.

Dorr War

A short-lived armed insurrection in the U.S. during the early 1840s, led by Thomas Wilson Dorr, advocating for broader voting rights in Rhode Island.

John Tyler

The tenth President of the United States, who served from 1841 to 1845, known for his annexation of Texas.

Whig Economic Program

Economic policies advocated by the American Whig Party in the mid-19th century, emphasizing support for industry, banking, and internal improvements like roads and canals.