Answer:
a) H0: u = presence of a unit root
HA: u ≠ presence of a unit root ( i.e. stationary series )
b) t stat = -0.064
c) We will reject the Null hypothesis and the next step will be to accept the alternative hypothesis
d) It is not valid to compare the estimated t stat with the corresponding critical value because a random walk is non-stationary while the difference is stationary because it is white noise
Explanation:
<u>a) stating the null and alternative hypothesis</u>
H0: u = presence of a unit root
HA: u ≠ presence of a unit root ( i.e. stationary series )
<u>b) performing the test </u>
critical value = -2.88
T stat = coefficient / std error
= -0.02 / 0.31 = -0.064
c) From the test, the value of T stat > critical value we will reject the Null hypothesis hence the next step will be to accept the alternative hypothesis
d) It is not valid to compare the estimated t stat with the corresponding critical value because a random walk is non-stationary while the difference is stationary because it is white noise
Answer:
Maria spends all of her money on paperback novels and beignets In 2011 she Earned $27 per hour, the price of a paperback novel was $9, and the price of a beignet was $3.
Following give the nominal value of a variable: -
- The price of a beignet is $3 in 2011
- Maria's wage is $27 per hour in 2011
Following give the real value of a variable:
- The price of a paperback novel is 3 beignets in 2011
- Maria's wage is 9 beignets per hour in 2011.
Suppose that the Fed sharply macaws the money supply between 2011 and 2016 In 2016, Maria's wage has risen to $54 per hour. The price of a paperback novel is $18 and the price of a beignet is $6
In 2016, the relative price of a paperback novel is 3 beignet
Between 2011 and 2016, the nominal value of Maria's wage increases and the real value of her wage remains the same.
Monetary neutrality is the proposition that a change in the money supply affecis nominal variables and does not affecis real variables
It might be easier because most credit unions require some kind of affiliation while banks will let anyone with money open and account.
Answer:
A.
Explanation:
Digital payments require users to have a bank account.
