Consider the Following Vector Error Correction (VECM) Model $\Delta$ Y_t = Y_t-5 + ₁

question 8

Multiple Choice

Consider the following vector error correction (VECM) model: $\Delta$ y_t = y_t-5 + ₁ $\Delta$ y_t-1 + 11efcd90_39fd_be4b_b057_81d80004b874_TB7071_00₂ $\Delta$ y_t-2 + 11efcd90_39fd_be4b_b057_81d80004b874_TB7071_00₃ $\Delta$ y_t-3 + 11efcd90_39fd_be4b_b057_81d80004b874_TB7071_00₄ $\Delta$ y_t-4 + u_t
Where y_t is a k* 1 vector of variables, and u_t is a k* 1 vector of disturbances.
Which of the following statements is true of the VECM?

• A) Johansen's test for cointegration centres on the rank of the matrix ₁
• B) If the variables y_t are cointegrated, will be of full rank
• C) If the rank of is zero, the variables are cointegrated
• D) Provided that all of the series in y are nonstationary, the rank of can be at most k-1.

Comprehend the classification of contracts in terms of formation, performance, and enforceability.

Understand the significance of specific contract clauses, such as letter-of-credit agreements, in business transactions.

Identify the elements of the marketing mix and understand their significance.

Differentiate between needs, wants, and demands in marketing terminology.

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