If the Durbin-Watson Statistic Is Less Than D_L,then It Is

question 29

Multiple Choice

If the Durbin-Watson statistic is less than d_L,then it is concluded that

• A)There is significant positive autocorrelation.
• B)There is significant negative autocorrelation.
• C)There is significant autocorrelation but it cannot be identified whether it is positive or negative.
• D)The test results are inconclusive.

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Definitions:

Net Capital Outflow

The difference between the domestic country's sale of assets to foreigners and the domestic purchases of foreign assets over a given period, usually indicating how much a country is investing abroad compared to foreign investments in the country.

Government Budget Deficit

A situation where a government spends more money than it receives in revenue over a particular period, often leading to the accumulation of debt.

Real Exchange Rate

The rate at which the goods and services of one country can be exchanged for the goods and services of another, adjusted for inflation.

Net Exports

The value of a country's total exports minus its total imports, representing the net effect of a country's international trade on its economic output.