Which of These Statements Is True About Vector Autoregressive Models

question 14

Multiple Choice

Which of these statements is true about vector autoregressive models?
(I) They allow the value of a variable to depend on more than just its own lags
(II) All variables are endogenous
(III) The researcher does not need to specify which variables are endogenous or exogenous
(IV) All variables are exogenous

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

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