Question: 16. (2 points) Consider the regression Yt - Bo + BIPBe + et, where Yt = per capita banana consumption in year t (in pounds)

16. (2 points) Consider the regression Yt - Bo + BIPBe + et, where Yt = per capita banana consumption in year t (in pounds) PBt = price of bananas (in cents per pound) Which of the following statements is /are true? I The price of apples in year t would appear in the deterministic part of the regression. II If the price of apples in year t is positively correlated with PB and negatively correlated with Yt, then the expected bias of the B1 estimate is negative. A. Only I B. Only II C. I and II D. Neither I nor

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