When Xt is strictly exogenous, the following estimator(s) of dynamic causal effects are available:
A) estimating an ADL model and calculating the dynamic multipliers from the estimated ADL coefficients
B) using GLS to estimate the coefficients of the distributed lag model
C) neither (a) or (b)
D) (a) and (b)
Question 2
Autocorrelation of the error terms
A) makes it impossible to calculate homoskedasticity only standard errors.
B) causes OLS to be no longer consistent.
C) causes the usual OLS standard errors to be inconsistent.
D) results in OLS being biased.
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