The long-run cumulative dynamic multiplier
A) cannot be calculated since in the long-run, we are all dead.
B) is the sum of all individual dynamic multipliers.
C) is the coefficient on Xt-r in the standard formulation of the distributed lag model.
D) is the difference between the coefficient on Xt-1 and Xt-r.
Answer: B
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A) increases; increases B) increases; decreases C) decreases; increases D) decreases; decreases E) does not change; does not change
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