A Disadvantage of Univariate Time-Series Models and VARs Is

question 19

Multiple Choice

A disadvantage of univariate time-series models and VARs is

• A)they cannot be used easily to analyze the effects of monetary policy.
• B)they are based on classical, rather than Keynesian, economic theory.
• C)they provide poor forecasts.
• D)they are not based on data.

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