[Solution Library] Consider the following model that purports to explain investment decisions as a function of interest rate as INV t = 0 + 1 RATE t + t
Question: Consider the following model that purports to explain investment decisions as a function of interest rate as
INV t = 0 + 1 RATE t + t , where t = 1,…, n. In order to have accuracy in our estimated coefficients, we should choose a sample of observations during a relatively stable interest rate period. (3 points)
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