Question: ( 2 5 points ) In a study of the influence of financial institutions on bond interest rates in Germany, quarterly data over a period

(25 points) In a study of the influence of financial institutions on bond interest rates in
Germany, quarterly data over a period of 12 years were analyzed. The postulated model
was
yi=0+1x1i+2x2i+i
where
yi= change over the quarter in the bond interest rates
x1i= change over the quarter in bond purchases by financial institutions
x2i= change over the quarter in bond sales by financial institutions
The estimated regression coefficients were as follows:
b1=0.057,b2=-0.065
Interpret these estimates.
 (25 points) In a study of the influence of financial institutions

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