Two Series Are Said to Be Cointegrated If

question 22

Multiple Choice

Two series are said to be cointegrated if:

• A)both series are I(1) but a linear combination of them is I(0).
• B)both series are I(0) but a linear combination of them is I(1).
• C)both series have the same set of explanatory variables but a different dependent variable.
• D)both series have the same dependent variable but a different set of explanatory variables.

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Definitions:

Farsightedness

A common vision condition where distant objects are seen more clearly than close ones, also known as hyperopia.

Normal Eyeball

An eyeball that has proper shape and size, allowing for clear vision and normal focusing ability without the aid of corrective lenses.

Ciliary Muscles

The ring of smooth muscle fibers in the eye's middle layer that controls the lens's shape for focusing.

Cataract

A medical condition where the lens of the eye becomes progressively opaque, leading to blurred vision and, if untreated, blindness.