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Which of the Following Are Consequences of Using Non-Stationary Data

Question 17

Multiple Choice

Which of the following are consequences of using non-stationary data in regressions?
(I) Shocks will be persistent
(II) It can lead to spurious regressions
(III) t-ratios will not follow a t-distribution
(IV) F-Statistic will not follow an F-distribution


A) I only
B) I and II only
C) I, II and III only
D) I, II, III and IV

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