We Face the Largest Risk of Getting a Spurious Result $\gamma$

question 16

Multiple Choice

We face the largest risk of getting a spurious result when:

• A) Regressing a variable with a unit root against a variable without a unit root.
• B) Regressing a variable with a unit root against a variable with a unit root.
• C) Regressing a variable with \(\gamma\)\(\lt\)1
• D) When errors are autocorrelated.