Question: Given two variables Y and X , specify the Granger test for the direction of causality between them. What did Simss study on Granger causality

Given two variables Y and X , specify the Granger test for the direction of causality between them. What did Sims’s study on Granger causality between money and national income for the United States show?

How would you also test for the possibility that a third variable Z also Granger-causes one or both of Y and X ?

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