The interpretation of the intercept is the mean of the annual growth rate of the money supply:

A. before the shift in policy.

B. over the entire period.

C. after the shift in policy.

An analyst is examining the annual growth of the money supply for a country over the past 30 years. This country experienced a central bank policy shift 15 years ago, which altered the approach to the management of the money supply.
The analyst estimated a model using the annual growth rate in the money supply regressed on the variable (SHIFT) that takes on a value of 0 before the policy shift and 1 after. She estimated the values in Exhibit 1:

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Exhibit 1: SHIFT Estimates Intercept SHIFT Coefficients 5.767264 -5.13912 Critical t-values, level of significance of 0.05: eOne-sided, left side: -1.701 fone-sided, right side: +1.701 gTwo-sided: 2.048 Standard Error 0.445229 0.629649 t-Stat. 12.95348 -8.16188.