The distributed lag model assumptions include all of the following with the exception of:
A) There is no perfect multicollinearity.
B) Xt is strictly exogenous.
C) E(ut Xt, Xt-1, Xt-2) = 0
D) The random variables Xt and Yt have a stationary distribution.
Answer: B
Economics
You might also like to view...
The nominal rate of protection shows the extent to which the domestic price of imported goods exceeds
(a) what the price would be without tariffs. (b) the cost of intermediate inputs. (c) the social opportunity costs of the good. (d) the no-trade equilibrium price.
Economics
The period of time over which there is at least one fixed input is the
A) calendar year. B) long run. C) short run. D) market horizon.
Economics