Question: Consider the following data generating process for a series yt: yt = mu + 1 . 5 yt - 1 + ut Which one
Consider the following data generating process for a series yt:
yt mu yt ut
Which one of the following most accurately describes the process for yt
Question Select one:
a
A random walk with drift
b
A nonstationary process
c
A deterministic trend process
d
An explosive process.
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