A price elasticity of demand of 0.67 implies

Adjusting monetary growth based on previous changes in nominal GDP

A) is relatively easy for the Fed to undertake because the implementation lag is quitelong. B) could be destabilizing because of the uncertainty of the length of impact lags. C) is an effective policy because it allows the Fed to influence future macroeconomic performance. D) raises the price level proportionately.

The coefficients of the VAR are estimated by

A) using a simultaneous estimation method such as TSLS. B) maximum likelihood. C) panel methods. D) estimating each of the equations by OLS.