The Following Is Not a Consequence of Xt and Yt

question 34

Multiple Choice

The following is not a consequence of Xt and Yt being cointegrated:

• A)if Xt and Yt are both I(1),then for some θ,Yt - θ Xt is I(0).
• B)Xt and Yt have the same stochastic trend.
• C)in the expression Yt - θ Xt ,θ is called the cointegrating coefficient.
• D)if Xt and Yt are cointegrated then integrating one of the variables gives you the same result as integrating the other.

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