b$.$ Use the model below to answer the following questions:

Where:

lo$()=8\mathrm{.}58+1\mathrm{.}93$log$()+0\mathrm{.}09+0\mathrm{.}0422\mathrm{.}01$

$(1\mathrm{.}912)(0\mathrm{.}145)(1\mathrm{.}079)(1\mathrm{.}677)$

$=702=0\mathrm{.}47$

$=2\mathrm{.}01$

$=$ Inflation Rate

$=$ Income

$=$ Net Exports

$=1$ if the country is an emerging economy

The standard errors are in $().$

i$.$ Interpret the constant and the coefficient of the dummy variable. $(4$ marks$)$

ii$.$ What is the optimal value of net exports? $(2$ mark$)$

iii. Test the hypothesis, at the $5\%$ level of significance, that a $1\%$ increase in income

causes the inflation rate to increase by $3\%.$ Be sure to show all steps. $(6$ marks$)$

iv$.$ Is $$ unbiased? Show$/$provide all necessary working and assumptions. $(2$ marks$)$

v$.$ Are you able to determine if the residuals are autocorrelated? Explain. $(2$ marks$)$