In the following equation, gdp refers to gross domestic product, and FDI refers to foreign direct investment.
log(gdp) = 2.65 + 0.607log(bankcredit) + 0.222FDI
(0.13) (0.022) (0.017)
Which of the following statements is then true?
Question 3 options:
If bank credit increases by 1%, gdp increases by 60.7%, the level of FDI remaining constant.
If gdp increases by 1%, bank credit increases by 0.607%, the level of FDI remaining constant .
If bank credit increases by 1, gdp increases by 0.607%, the level of FDI remaining constant.
If bank credit increases by 1%, gdp increases by 0.607%, the level of FDI remaining constant .