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If the Number of Non-Zero Eigenvalues of the Pi Matrix

Question 8

Multiple Choice

If the number of non-zero eigenvalues of the pi matrix under a Johansen test is 2, this implies that


A) There are 2 linearly independent cointegrating vectors
B) There are at most 2 linearly independent cointegrating vectors
C) There are 3 variables in the system
D) There are at least 2 linearly independent cointegrating vectors

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