## Question

# Suppose you want to model the relationship between the interest rate, the economic growth rate and the inflation rate. what would be first model to

Suppose you want to model the relationship between the interest rate, the economic growth rate and the inflation rate. what would be first model to fit explain.

## Step by Step Solution

There are 3 Steps involved in it

### Step: 1

Here are two common approaches Vector Autoregression VAR Model This approach assumes a simultaneous ...### Get Instant Access to Expert-Tailored Solutions

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### Step: 2

### Step: 3

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### Basic Econometrics

**Authors:** Damodar N. Gujrati, Dawn C. Porter

5th edition

73375772, 73375779, 978-0073375779

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