What is the impact of shocks to an AR(1) with no drift if ?
A) Shocks will gradually die away
B) Shocks persist in the system and never die away
C) Shocks will start to increase after the next observation but gradually die away
D) Shocks become more and more influential as time goes on

Question

What is the impact of shocks to an AR(1) with no drift if ?  
A) Shocks will gradually die away 
B) Shocks persist in the system and never die away 
C) Shocks will start to increase after the next observation but gradually die away 
D) Shocks become more and more influential as time goes on

Quizplus · Accepted Answer

The Answer of What is the impact of shocks to an AR(1) with no drift if ?  
A) Shocks will gradually die away 
B) Shocks persist in the system and never die away 
C) Shocks will start to increase after the next observation but gradually die away 
D) Shocks become more and more influential as time goes on

What Is the Impact of Shocks to an AR(1) with No