Which of the Following Identifies an Advantage of First Differencing

question 3

Multiple Choice

Which of the following identifies an advantage of first differencing a time-series?

• A)First differencing eliminates most of the serial correlation.
• B)First differencing eliminates most of the heteroskedastcicty.
• C)First differencing eliminates most of the multicollinearity.
• D)First differencing eliminates the possibility of spurious regression.

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