Assume that you have used the OLS estimator in the cointegrating regression and test the residual for a unit root using an ADF test. The resulting ADF test statistic has a
A) normal distribution in large samples.
B) non-normal distribution which requires ADF critical values for inference.
C) non-normal distribution which requires EG-ADF critical values for inference.
D) normal distribution when HAC standard errors are used.
Answer: C
Economics
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In which country is the central bank more independent than the Federal Reserve?
A) Germany B) Japan C) Great Britain D) All of the above.
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