Question: Looking at the impulse response function, if the central bank set the coefficient h to zero then: Question 1 options: the model be equivalent to
Looking at the impulse response function, if the central bank set the coefficient h to zero then: Question 1 options: the model be equivalent to a random walk; that is = 1 all of the options shown the model would still be stable, in the sense that it would return to equilibrium; that is < 1 the model would explode; that is > 1
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