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Suppose you have annual data on C (average grams of coffee consumed per capita), YD (real per capital disposable income), PC (price index for coffee),
Suppose you have annual data on C (average grams of coffee consumed per capita), YD (real per capital disposable income), PC (price index for coffee), PT (price index for tea), and POP (population in millions). You regress C on lnYD (ln is natural log), PC, PT, and POP, obtaining a reasonable R-square but no significant t statistics. What do you suspect is the problem here, and how would you remedy it?
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