Question: What does the error correction term (ECT) represent in the error correction model (ECM) in the Engle-Granger two-step method? a. The intermediate multiplier between the

What does the error correction term (ECT) represent in the error correction model (ECM) in the Engle-Granger two-step method? a. The intermediate multiplier between the variables b. The short-run dynamic relationship between the variables c . The residual from the cointegrating relationship d. The difference between the actual and predicted values of the dependent variable

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