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The ADF unit root test results of savings are given below. Part a) What do you think about the unit root of the savings

The ADF unit root test results of savings are given below. Part a) What do you think about the unit root of the savings variable at the constant level? Write hypotheses of unit root. If it has a unit root, how we can solve it? Part b) Tell the differences between the KPSS (Kwiatkowski-Phillips-Schmidt-Shin) test and the ADF (Augmented Dickey-Fuller) test. Part c) What is the difference between a stationary and a non-stationary time series variable? Null Hypothesis: SAVINGS has a unit root Exogenous: Constant Lag Length: 0 (Automatic-based on SIC, maxlag-5) Augmented Dickey-Fuller test statistic Test critical values: 1% level 5% level 10% level t-Statistic Prob. 0.5900 -1.349574 -3.724070 -2.986225 -2.632604

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