Question: There are two models 1) RCON, = Bo + Bi . DPI; and 2) RCON, = Bo + B1 . DPla + B2 . RW12

There are two models 1) RCON, = Bo + Bi .

There are two models 1) RCON, = Bo + Bi . DPI; and 2) RCON, = Bo + B1 . DPla + B2 . RW12 Real wealth and real disposable income are highly correlated and RW2 (real wealth) has small partial effect on RCON. Which of the following statement is true? a. Var( B1) Var (B1) c. Var( B1) = Var (B1)

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