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expected solution plus hypothesis
How to test the linear regression?
In a study relating college grade point average to time spent in various activities, students are asked how many hours they spend each week in four activities: studying, sleeping,
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Suppose an economy has the following Real money demand Function: L(Y,i) = 1000 + 0.3Y - 4000i, where i is the nominal interest rate paid on non-monetary (financial) assets,
Regression Analysis
Ask question #are there any welfare or subsidy payment that should be reviewed or added?
question number one
Question: (a) Formulate a VAR with 4 lags and also rewrite it in matrix form, mentioning the limitations of such models. (b) What is the rationale behind introducing lag-dep
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