h) I proceed to study the short-run dynamic of the changes in gold price (∆LGPRICE) and inflation (INF) and estimated a VAR model. Write down the VAR(1) model using the notation ∆LGPRICE  and INF?

 

 

(j) Using the regression model in part (h), I performed the Granger causality test to determine the predictive power of INF on ∆LGPRICE, and vice versa. State the null hypothesis of these Granger causality tests using the coefficients/parameters in the VAR specification?