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Panel 1C (LGPRICE) Panel 1D (INF) (f) I performed the Engle-Granger test on the U.S. logarithm of the consumer price index (LCPI) and LGPRICE assuming

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Panel 1C (LGPRICE) Panel 1D (INF) (f) I performed the Engle-Granger test on the U.S. logarithm of the consumer price index (LCPI) and LGPRICE assuming that LCPI is I(1). At the 5% significance level, what can you infer about the test result? [2] Series: LCPI LGPRICE Sample: 1969M12 2021M08 Included observations: 621 Cointegrating equation deterministics: C Automatic lags specification based on Schwarz criterion (maxlag=18) (g) Given your findings in part (f), is gold a long-term hedge of inflation? Explain. [2]

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