The following is not an appropriate way to tell whether two variables are cointegrated:
A) see if the two variables are integrated of the same order.
B) graph the series and see whether they appear to have a common stochastic trend.
C) perform statistical tests for cointegration.
D) use expert knowledge and economic theory.
Correct Answer:
Verified
Q1: To test the null hypothesis of a
Q2: If Yt is I(2), then
A)Δ2Yt is stationary.
B)Yt
Q4: ?2Yt
A)= ?Yt - ?Yt-1.
B)=
Q5: The coefficients of the VAR are estimated
Q6: The error term in a multiperiod regression
A)is
Q7: The following is not a consequence of
Q8: Multiperiod forecasting with multiple predictors
A)is the same
Q9: The biggest conceptual difference between using VARs
Q10: One advantage of forecasts based on a
Q11: A vector autoregression
A)is the ADL model with
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