Question 45:

In the following equation, gap refers to gross domestic product, and FDI refers to foreign direct investment. log(gdp = 2.65 + 0.527log(bankcredit) + 0.222FDI a) If bank credit increases by 1%, gdp increases by 0.527% the level of FDI remaining constant b) If bank credit increases by 1%, gdp increases by log(0.527)% the level of FDI remaining constant