A simple statistical model that assumes that the value of a variable at any date depends just on its own past values plus an error term is known as a

A. vector autoregression (VAR) model.
B. univariate time-series model.
C. structural VAR model.
D. structural equilibrium model.


Answer: B

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On January 1, Year 1, Mahoney Company borrowed $169,000 cash from Sun Bank by issuing a 5-year, 8% term note. The principal and interest are repaid by making annual payments beginning on December 31, Year 1. The annual payment on the loan equals $40,750. What is the amount of principal repayment included in the payment made on December 31, Year 1? 

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