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Using the data in the tab Investment consider the following regression: INV-GDP = B0 + B1*FEDFUNDS + B2*GrowthGDPY2Y-RD We include the growth in GDP year

Using the data in the tab "Investment" consider the following regression: INV-GDP = B0 + B1*FEDFUNDS + B2*GrowthGDPY2Y-RD

We include the growth in GDP year to year as a way to capture, or proxy, economic confidence. The argument is when growth is occurring we are more confident. With this in mind what sign do you expect for the coefficient B2? Explain

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