Question 16 2 pts The biggest conceptual difference between using VARs for forecasting and using them for structural modeling is that (O you need to use the Granger causality test for structural modeling. (O structural modeling requires very specific assumptions derived from economic theory and institutional knowledge, of what is exogenous and what is not. (O you can no longer use the information criteria to decide on the lag length. (O structural modeling only allows a maximum of three equations in the VAR. Question 17 2 pts The following is not an appropriate way to tell whether two variables are cointegrated () see if the two variables are integrated of the same order. (O graph the series and see whether they appear to have a common stochastic trend. O perform statistical tests for cointegration. (O use expert knowledge and economic theory. Question 18 2 pts In a Vector Error Correction Model (VECM), O current values of Y, -OX, help to predict future values of AY, and/or AX,. O past values of Y, -8X, help to predict future values of AY, and/or AX,. O errors are corrected for serial correlation using the Cochrane-Orcutt method. O VAR techniques, such as information criteria, no longer apply. Question 19 2 pts If Yt is I(1), then O AY is stationary. O AZY is stationary. O AYt has a unit autoregressive root. O Yt is stationary.Question 20 2 pts The order of integration () can never be zero. () is the number of times that the series needs to be differenced for it to be stationary. O is the value of g in the quasi difference(ay -g, ). (O depends on the number of lags in the VAR specification. Question 21 2 pts The long-run cumulative dynamic multiplier cannot be calculated since in the long-run, we are all dead. is the sum of all individual dynamic multipliers. is the coefficient on X;.; in the standard formulation of the distributed lag model. O O O O is the difference between the coefficient on X;_; and X,_,. Question 22 2 pts You should use the QLR test for breaks in the regression coefficients, when (O the Chow F-test has a p value of between 0.05 and 0.10. (O the suspected break data is known. (O the suspected break data is not known. (O there are breaks in only some, but not all, of the regression coefficients. Question 23 2 pts Pseudo out of sample forecasting can be used for the following reasons with the exception of (O giving the forecaster a sense of how well the model forecasts at the end of the sample. O estimating the RMSFE. (O analyzing whether or not a time series contains a unit root. (O evaluating the relative forecasting performance of two or more forecasting models