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If a "Break" Occurs in the Population Regression Function, Then

Question 23

Multiple Choice

If a "break" occurs in the population regression function, then


A) inference and forecasting are compromised when neglecting it.
B) an Augmented Dickey Fuller test, rather than the Dickey Fuller test, should be used to test for stationarity.
C) this suggests the presence of a deterministic trend in addition to a stochastic trend.
D) forecasting, but not inference, is unaffected, if the break occurs during the first half of the sample period.

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