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The Following Regression Analysis Was Conducted for the Inflation Rate eBP=a0+a1((1+IUS)(1+IB)1)+μe _ { B P } = a _ { 0 } + a _ { 1 } \left( \frac { \left( 1 + I _ { U S } \right) } { \left( 1 + I _ { B } \right) } - 1 \right) + \mu

question 41

Multiple Choice

The following regression analysis was conducted for the inflation rate information and exchange rate of the British pound:
eBP=a0+a1((1+IUS) (1+IB) 1) +μe _ { B P } = a _ { 0 } + a _ { 1 } \left( \frac { \left( 1 + I _ { U S } \right) } { \left( 1 + I _ { B } \right) } - 1 \right) + \mu
Regression results indicate that a0 = 0 and a1 = 2. Therefore:

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