Which of the Following Statements Is True

question 8

Multiple Choice

Which of the following statements is true?

• A)A model with a lagged dependent variable cannot satisfy the strict exogeneity assumption.
• B)Stationarity is critical for OLS to have its standard asymptotic properties.
• C)Efficient static models can be estimated for nonstationary time series.
• D)In an autoregressive model, the dependent variable in the current time period varies with the error term of previous time periods.

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Definitions:

Short-term Memory

The component of memory where small amounts of information can be stored for a brief period, typically seconds to a minute.

Icon

A symbol or graphic representation on a screen; or a person or thing regarded as a representative symbol or as worthy of veneration.

Echo

A reflected sound wave that is heard again by the emitter or another listener because the sound waves bounce off objects.

Sensory Registers

The initial processing systems in the brain that hold incoming information from the senses for a very brief period of time.