Let xt be the annual growth rate of the money supply and yt be the unemployment rate in year t. Both yt and xt are stationary, and are modelled as a vector autoregression (VAR) model. The VAR model has certain merits. For example, the equation for yt in the VAR model takes advantage of Question 36 Answer a. the predictive power of the lags of xt only. b. the predictive power of the lags of yt only. c. the predictive power of xt only. d. only the predictive power of the lags of xt and the predictive power of the lags of yt . e. the predictive power of the lags of xt, the predictive power of the lags of yt , and the predictive power of xt