Question 7

The following regression model was estimated to forecast the value of the Malaysian ringgit (MYR): 4.5 points Save Answer MYR=a+a1INC+1+a2INF+Ut where MYR is the quarterly change in the ringgit, INF is the previous quarterly percentage change in the inflation differential, and INC is the previous quarterly percentage change in the income growth differential. Regression results indicate coefficients ao = .004; a15, and a2=-6. Based on the regression result, which of the following statement is correct? Here is a link to a blank spreadsheet that you might want to use for the test: blank excel worksheet.xlsx A. For a one-unit percentage change in the inflation differential, Malaysian ringgit is expected to change by 5% in the same direction, other things held constant. OB. For a one-unit percentage change in the inflation differential, Malaysian ringgit is expected to change by .04% in the same direction, other things held constant. OC. For a one-unit percentage change in the inflation differential, Malaysian ringgit is expected to change by 6% in the opposite direction, other things held constant. OD. For a one-unit percentage change in the inflation differential, Malaysia git is expected to change by .6% in the same direction, other things held constant. OE. none of the above is correct

The following regression modol was estinated to forecast the value of the Malagnian ringgt (MYR). E. none of the above is contad