Which of the Following Is NOT True of Newey-West Standard

question 12

Multiple Choice

Which of the following is NOT true of Newey-West standard errors?

• A)allows valid inference despite the presence of serial correlation
• B)does not require knowledge of structure of serial correlation
• C)valid when estimated using stationary data
• D)always produce smaller standard error estimates,which makes them the BLUE estimator

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Definitions:

Long-Run Equilibrium

A state in which all firms in the market are making zero economic profit, and all inputs can be adjusted by managers.

Plaster

A building material used for coating walls and ceilings, consisting mainly of water, sand, lime, or gypsum.

Labor

The human effort, both physical and mental, contributed towards the production of goods and services.

Interest Rate

The part of a loan that incurs interest fees for the borrower, often shown as an annual percentage rate of the total amount borrowed.