• Question: In an equation for annual data, suppose that DL(2) int. = 1.6 + 0.48in fi- 0.15in ft-1+0.32inft-2 • where int is an interest rate and in f is the inflation rate, what are the impact and long-run propensities?

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• Question: In an equation for annual data, suppose that
DL(2)
int 1.6+0.48in ft-0.15in ft-1+0.32in ft-2
• where int is an interest rate and in f is the inflation rate,
what are the impact and long-run propensities?
Transcribed Image Text:• Question: In an equation for annual data, suppose that DL(2) int 1.6+0.48in ft-0.15in ft-1+0.32in ft-2 • where int is an interest rate and in f is the inflation rate, what are the impact and long-run propensities?
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