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Unformatted text preview: A one percentage point rise in the interest rate is expected to cause investment to decline by $226.64 billion. (This is a percentage) WATCH YOUR UNITS WHEN YOU MAKE YOUR INTERPRETATION For exam next Friday BE CAREFUL ABOUT YOUR INTERPRETATIONS!  A 1% rise in investment is expected to cause the interest rate to fall by 226 BE CAREFUL OF REVERSE CAUSALITY You always start with the independent variable (R) having an effect on the dependent variable (I). INTERPRETATION: Thus, we have a 90% level of confidence that the true slope coefficient lies between (161.94 and 291.34) THAT IS, in repeated sampling , 90% of all intervals so constructed will contain USE THIS INFORMATION TO FILL IN THE BLANKS ON THE WORKSHEET Since the value of the test statistic falls in the critical region, we reject H0....
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This note was uploaded on 06/03/2009 for the course ECON 203 taught by Professor Casler during the Spring '09 term at Allegheny.
 Spring '09
 Casler

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