12.1.7 Question Help l insttutions on bond interest rates in a certain country,

Question

12.1.7 Question Help l insttutions on bond interest rates in a certain country, quarternly data over a period of 12 years were analyzed. The postulated model was y-A + ? x "h": + c where y is the change over the quarter n the bond interest rates u s te change ove the quarter in bond purchases by f a dal ns to s and ta s the change over the quarter in bond sales by financial insthutions. The essmated regression coefcents are b, -005 and p-0035 Intereret these estmates. Whatis the correct interpretabion of the coeticient estimates ? Select the correcdt choice below and, tnecessar. 9in the answer boxes within your choice percent increasein the bond interest rates eads to a change in he ostmated amount of bonds purchased y Imancal nsthutions by Jand a dsceasein bond sales by tinancial instutions by OB. Each addtional bond purchased by financial insthutions leads to a change in the estimated bond interest rates by lll percent Each addtional bond sale by financal instrtutions leads to a change in the estimated bond interest rates by U7/ percent OC. There is no meaninghul interpretation of the regression coefficients for this appilication

Explanation / Answer

Each percent increase in the bond interest rates leads to a change in the estimated amount of bonds ourchased by financial institution by 0.055 and a decrease in bonds sale by financial institution by 0.035

Related Questions

Navigate

• Browse (All)
• Browse 1
• Subjects

---

---

Integrity-first tutoring: explanations and feedback only — we do not complete graded work. Learn more.