The coefficient on the monetary base is not a trend rate bec

The coefficient on the monetary base is not a trend rate because

A.the independent variable is not a measure of time

B.this is cross sectional data

C.both a and b are true

D.the coefficient of time is a trend rate

Solution

Correct option (C).

When data is cross-sectional, a trend rate cannot be used. Also, an independent variable is not a measure of time, so cannot be used for trending.