Given the relationship between the two variables, the following ...

[maychende]

Given the relationship between the two variables, the following is most likely to be exogenous:
 
  A) the inflation rate and the short term interest rate: short-term interest rate is exogenous
  B) U.S. rate of inflation and increases in oil prices: oil prices are exgoneous
  C) Australian exports and U.S. aggregate income: U.S. aggregate income is exogenous
  D) change in inflation, lagged changes of inflation, and lags of unemployment: lags of unemployment are exogenous

Question 2

Quasi differences in Yt are defined as
 
  A) Yt - Yt-1.
  B) Yt - 1Yt-1.
  C) Yt - 1Yt-1.
  D) 1(Yt - Yt-1).

[maya.nigrin17@yahoo.com]

Answer to Question 1

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Answer to Question 2

Answer: B

[maychende]

Great answer, keep it coming

[Zebsrer]

Thanks for the timely response, appreciate it