Vector autoregressive models should be used for forecasting if the series being studied are cointegrated.
Answer the following statement true (T) or false (F)
False
Rationale: FEEDBACK: Error correction models should be used for forecasting if the series being studied are cointegrated.
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The branch of economics which studies the behavior of entire economies and policies that affect the economy as a whole is called
A) macroeconomics. B) normative economics. C) microeconomics. D) public economics.
Refer to Figure 2-2. The linear production possibilities frontier in the figure indicates that
A) it is progressively more expensive to produce meat. B) Mendonca has a comparative disadvantage in the production of meat. C) the tradeoff between meat and vegetables is constant. D) Mendonca has a comparative advantage in the production of vegetables.
According to the Keynesians,
a. an easy-fiscal tight-monetary policy reduces the trade deficit, such as what occurred during the 1980s. b. an easy-fiscal tight-monetary policy mix affects the composition of output by encouraging imports of foreign goods and discouraging U.S. exports, as was experienced during the 1980s. c. there was not a link between the rising government budgetary deficit and the rising trade deficit during the mid-1980s. d. budget deficits and trade deficits should not be a source of concern
At consumer equilibrium, the marginal utility of one dollar’s worth of any good is equal to ______.
a. one b. the total utility of all other goods combined. c. the marginal utility of one dollar’s worth of any other good d. zero