Multiperiod forecasting with multiple predictors
A) is the same as the iterated AR forecast method.
B) can use the iterated VAR forecast method.
C) will yield superior results when using the multiperiod regression forecast h periods into the future based on p lags of each Yt , rather than the iterated VAR forecast method.
D) will always yield superior results using the iterated VAR since it takes all equations into account.
Answer: B
You might also like to view...
From an economist's perspective, why are property rights and the rule of law so important for economic development?
A. They create incentives and stability for economic growth and development. B. They discourage all criminal activity that encourages economic growth and development. C. They provide a creative environment that encourages economic growth and development. D. They prevent other countries from benefiting from trade, which helps our economic growth and development.
If a $10 sales tax is imposed on a good and the equilibrium price increases by $10, the tax is
A) split between buyers and sellers but not evenly. B) paid fully by sellers. C) paid fully by buyers. D) split evenly between buyers and sellers. E) perhaps split between buyers and sellers but it is impossible to determine the incidence without further information.
Business taxes increase. What is the impact on aggregate expenditures and income?
A) Both increase. B) Both decrease. C) Aggregate expenditure increases and income decreases. D) Aggregate expenditure decreases and income increases.
The price of a new textbook increases from $120 to $160, while the price of used copies of the textbook increased from $80 to $100. Other things being equal, we would expect
A) the quantity demanded of the used textbook to increase and the quantity demanded of the new textbook to decrease. B) the quantity demanded of both to fall. C) the demand for the new textbook to increase and the demand for the used textbook to decrease. D) the quantity demanded of the used textbook to decrease and the quantity demanded of the new textbook to increase.