Which of the Following Statements Is True Concerning VAR Impulse $\pm$

question 18

Multiple Choice

Which of the following statements is true concerning VAR impulse response functions?
(I) Impulse responses help the researcher to investigate the interactions between the variables in the VAR.
(ii) An impulse response analysis is where we examine the effects of applying unit shocks to all of the variables at the same time.
(iii) Impulse responses involve calculating the proportion of the total forecast error variance of a given variable is explained by innovations to each variable.
(iv) If the $\pm$ 2 standard error bars around the impulse responses for a given lag span (i.e. include) the x-axis, it would be said that the response is statistically significant.

• A) (i), (ii), (iii), and (iv)
• B) (i), (ii) and (iii) only
• C) (i) only
• D) (i) and (ii) only

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Definitions:

Alfred Adler

Austrian psychiatrist and founder of Individual Psychology, emphasizing the importance of the feeling of inferiority in the development of personality.

Inferiority Complex

A psychological condition that arises from feelings of inadequacy and insecurity, often leading to overcompensation or social withdrawal.

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The successful attainment of goals, tasks, or challenges, often recognized by awards, honors, or a sense of personal fulfillment.

Adult Personality

encompasses the enduring patterns of thoughts, feelings, and behaviors that define an individual and distinguish them from others in adulthood.