The Following Is Not a Consequence of X_t $X _ { t }$

question 5

Multiple Choice

The following is not a consequence of X_t and Y_t being cointegrated:

• A) if \(X _ { t }\) and Y_t are both I(1) , then for some \(\theta , Y _ { t } - \theta X _ { t } \text { is } I ( 0 )\)
• B) \(X _ { t } \text { and } Y _ { t }\) have the same stochastic trend.
• C) in the expression \(Y _ { t } - \theta X _ { t } , \theta\) is called the cointegrating coefficient.
• D) if \(X _ { t } \text { and } Y _ { t }\) are cointegrated then integrating one of the variables gives you the same result as integrating the other.

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Definitions:

Inventory

All raw materials, components, completed or partially completed products, and pieces of equipment a firm uses.

Formal Operational Thought

The stage of cognitive development, according to Piaget, characterized by the ability to think abstractly, logically, and systematically.