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3. Consider the following regression equation in which CPI, ER, M2 and GDP denote consumer price index, exchange rate, quantity of broad money and real GDP respectively. IND is a dummy variable, equal to one if the central bank is independent in making monetary policy and equal to zero if the central bank is not independent in making monetary policy. The equation is estimated by OLS with time-series data for the period 1985 to 2019. [20 marks] log(CPI) = 4.042 + 0.137 log(ER) + 0.762 log(M2) - 0.611 log(GDP) + 0.163 IND a) How would you interpret (explain the meaning of) the estimated regression coefficients in this equation? b) Explain why there is a chance of facing i) multicollinearity and ii) endogeneity in this equation. c) Explain a suitable method for diagnosing the possible presence of multicollinearity in this equation. You can use numerical example for this model if you want