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A regulator from the Federal Reserve is investigating the effect of competition between banks on credit supply. They wish to know whether the relationship differs

A regulator from the Federal Reserve is investigating the effect of competition between banks on credit supply. They wish to know whether the relationship differs between banks that are regulated by the Federal Deposit Insurance Corporation (FDIC) and banks that are not regulated by the FDIC. They have collected a large data set and obtained the estimates below loans; = 2.5 + 1.2banks; +0.5FDIC +0.25banks; *FDIC. What is the intercept for banks that are regulated by the FDIC? 3 2.5 3.7 3.25 None of the above

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