Which of the following statements is true?
A. The calculated t statistic is valid and efficient in case of a spurious regression.
B. If an explanatory variable or a dependent variable is integrated of the order one, the OLS estimators are asymptotically normally distributed.
C. An error correction model can be used to study the short-run dynamics in the relationship between the dependent variable and the explanatory variables in a time series model.
D. The Dickey-Fuller test can be used to test for heteroskedasticity in the error terms.
Answer: C
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If the reserve requirement were 15% percent, the value of the monetary multiplier would be
A. 5.50. B. 8.54. C. 7.32. D. 6.67.
The present value of $100 received 3 years from now given a current interest rate of 6% is
A. $82.00. B. $83.96. C. $100.00. D. $116.00.
If an economy has to sacrifice only one unit of good X for each unit of good Y produced throughout the relevant range, then its production possibilities curve has a(n):
A) zero slope. B) constant, negative slope. C) increasing, negative slope. D) decreasing, negative slope.
A mismatch between the geographic location of workers and the location of job openings would result in what type of unemployment?
A. Frictional B. Cyclical C. Wait D. Structural