If Yt is I(2), then

A) ?2Yt is stationary.
B) Yt has a unit autoregressive root.
C) ?Yt is stationary.
D) Yt is stationary.

Answer: A

Economics

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Under a flexible exchange rate system, there is no need for foreign exchange reserves.

Answer the following statement true (T) or false (F)

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Refer to the following graph to answer the question:Suppose price rises from $90 to $110. Using representative arrows, the quantity effect is a relatively ________ (short, long) arrow pointing ________ (upward, downward).

A. short; upward B. short; downward C. long; downward D. long; upward

Economics