Question

Investmenti = 6.682 – 4.319 Interest ratei
Se (1.22) (1.33) ; r^2 = 0.528

1. Interprete this regression.

2. How would you interprete r^2 ?

3. Does the negative value of interest rate make any economic sense? What is the
underlying economic theory?

4. Suppose I want to introduce a new variable for the above equation, that is Investment
subsidy. Now what will be the sign of the coefficient of Investment Subsidy?

Answer 1

Answer:hzhjesudhdhdjdjdjdjdnjdjdjxjdjdjdj

Explanation:ggsdhfffhrhfhf