Consider the following simultaneous equations model EXPi = B1 + B2AlDi + B3INCi+ BAPOP; + uli AlDi = V1 + 12EXPi + 13PSi + uzi
Consider the following simultaneous equations model EXPi = B1 + B2AlDi + B3INCi+ BAPOP; + uli AlDi = V1 + 12EXPi + 13PSi + uzi where EXP=expenditure; AID=aid; INC=Income; POP=Population; PS=political stability index Use this model to answer Question 1 (a), (b), (c), (d) and (e) as indicated in the text
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