If a Trend Is Given by Y_t = Ae^bt, Then

question 21

Multiple Choice

If a trend is given by y_t = ae^bt, then:

• A)the fitted trend value in period 0 is b.
• B)the trend is exponentially increasing.
• C)the trend is exponentially decreasing.
• D)the trend is increasing if b > 0 and decreasing if b < 0.

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