A researcher estimated the following log-linear money-demand function, using data for the 39 year period.

Where Interest rate , Income , Liquid Assets

NB: The values in the parenthesis are the standard errors.

(i). Interpret the results of the model. (3 Marks)

(ii).Conduct hypothesis test on the slope regression coefficients of the model at 5% level of significance. (3 Marks)

(iii) Conduct joint hypothesis test at 1% level of significance (4 Marks)

asked by guest
on Oct 24, 2024 at 8:21 am



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