Economics MCQ Econometrics What is the change in predicted GDP per capita associated with an increase of $26 per capita in foreign aid? Assume the current foreign aid is $70 per capita, the current value of exports is 90, and the current percent of individuals with higher education is 33 percent.

What is the change in predicted GDP per capita associated with an increase of $26 per capita in foreign aid? Assume the current foreign aid is $70 per capita, the current value of exports is 90, and the current percent of individuals with higher education is 33 percent.

Naim 10:15 Econometrics

You obtain the following sample regression function:

GDP_hat = 5367 - 32ForeignAid +76ExportValue + 8*PercentHigherEducation

What is the change in predicted GDP per capita associated with an increase of $26 per capita in foreign aid? Assume the current foreign aid is $70 per capita, the current value of exports is 90, and the current percent of individuals with higher education is 33 percent.

A. 1820
B. -832
C. 10,231
D. -1976
E. None of the above.

Answer: B. -832

Economics MCQ

What is the change in predicted GDP per capita associated with an increase of $26 per capita in foreign aid? Assume the current foreign aid is $70 per capita, the current value of exports is 90, and the current percent of individuals with higher education is 33 percent.

What is the change in predicted GDP per capita associated with an increase of $26 per capita in foreign aid? Assume the current foreign aid is $70 per capita, the current value of exports is 90, and the current percent of individuals with higher education is 33 percent.

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