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

question 58

Multiple Choice

The interpretation of the slope coefficient in the model ln(Yi) = β0 + β1Xi + ui 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 100 β1 % change in Y.
• C)a 1% change in X is associated with a change in Y of 0.01 β1.
• D)a change in X by one unit is associated with a β1 change in Y.

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Definitions:

Marginal Tax Rate

The percentage of tax applied to the final dollar of income, signifying the tax paid on any extra dollar earned.

Marginal Tax Rate

The rate at which the last dollar of a taxpayer's income is taxed, indicating the proportion of any additional income that will be taken in taxes.

Average Tax Rate

A calculation resulting from dividing an individual's or entity's total tax payments by their total taxable income, indicating the portion of income paid in taxes.

Federal Government

The national government of the United States, which governs at the country level, consisting of the legislative, executive, and judicial branches.