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The Following Is Not an Appropriate Way to Tell Whether

Question 11

Multiple Choice

The following is not an appropriate way to tell whether two variables are cointegrated:


A) see if the two variables are integrated of the same order.
B) graph the series and see whether they appear to have a common stochastic trend.
C) perform statistical tests for cointegration.
D) use expert knowledge and economic theory.

Correct Answer:

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