One Advantage of Forecasts Based on a VAR Rather Than

question 30

Multiple Choice

One advantage of forecasts based on a VAR rather than separately forecasting the variables involved is

• A)that VAR forecasts are easier to calculate.
• B)you typically have knowledge of future values of at least one of the variables involved.
• C)it can help to make the forecasts mutually consistent.
• D)that VAR involves panel data.

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