If an Explanatory Variable Is Strictly Exogenous It Implies That

question 6

Multiple Choice

If an explanatory variable is strictly exogenous it implies that:

• A)changes in the lag of the variable does not affect future values of the dependent variable.
• B)the variable is correlated with the error term in all future time periods.
• C)the variable cannot react to what has happened to the dependent variable in the past.
• D)the conditional mean of the error term given the variable is zero.

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Definitions:

Sensorimotor Stage

The first of Piaget’s stages of cognitive development, characterized by coordination of sensory information and motor activity, early exploration of the environment, and lack of language.

Concrete Operational Stage

Piaget’s third stage, characterized by logical thought concerning tangible objects, conservation, and subjective morality.

Emerging Adulthood

Period of development, roughly spanning the ages of 18 to 25, during which time many young people in affluent nations attend college and graduate school, sort out identity issues, and create life plans.

Identity Issues

Psychological challenges or conflicts centered around one's sense of personal identity and uniqueness.