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The Following Equations Represent a Simultaneous Equations Model: K1 =

question 7

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The following equations represent a simultaneous equations model: K1 = The following equations represent a simultaneous equations model: K<sub>1</sub> = <sub>1</sub>K<sub>2</sub> + <sub>1</sub>z<sub>1</sub> + u<sub>1</sub> K<sub>2</sub> = <sub>2</sub>K<sub>1</sub>+ <sub>2</sub>z<sub>2</sub> + u<sub>2</sub> OLS will suffer from simultaneity bias if: A) u<sub>1</sub> is correlated with z<sub>1</sub>. B) z<sub>1</sub> is correlated with z<sub>2</sub>. C) K<sub>2</sub> is correlated with u<sub>1</sub>. D) K<sub>1</sub> is correlated with u<sub>1</sub>. 1K2 + The following equations represent a simultaneous equations model: K<sub>1</sub> = <sub>1</sub>K<sub>2</sub> + <sub>1</sub>z<sub>1</sub> + u<sub>1</sub> K<sub>2</sub> = <sub>2</sub>K<sub>1</sub>+ <sub>2</sub>z<sub>2</sub> + u<sub>2</sub> OLS will suffer from simultaneity bias if: A) u<sub>1</sub> is correlated with z<sub>1</sub>. B) z<sub>1</sub> is correlated with z<sub>2</sub>. C) K<sub>2</sub> is correlated with u<sub>1</sub>. D) K<sub>1</sub> is correlated with u<sub>1</sub>. 1z1 + u1
K2 = The following equations represent a simultaneous equations model: K<sub>1</sub> = <sub>1</sub>K<sub>2</sub> + <sub>1</sub>z<sub>1</sub> + u<sub>1</sub> K<sub>2</sub> = <sub>2</sub>K<sub>1</sub>+ <sub>2</sub>z<sub>2</sub> + u<sub>2</sub> OLS will suffer from simultaneity bias if: A) u<sub>1</sub> is correlated with z<sub>1</sub>. B) z<sub>1</sub> is correlated with z<sub>2</sub>. C) K<sub>2</sub> is correlated with u<sub>1</sub>. D) K<sub>1</sub> is correlated with u<sub>1</sub>. 2K1+ The following equations represent a simultaneous equations model: K<sub>1</sub> = <sub>1</sub>K<sub>2</sub> + <sub>1</sub>z<sub>1</sub> + u<sub>1</sub> K<sub>2</sub> = <sub>2</sub>K<sub>1</sub>+ <sub>2</sub>z<sub>2</sub> + u<sub>2</sub> OLS will suffer from simultaneity bias if: A) u<sub>1</sub> is correlated with z<sub>1</sub>. B) z<sub>1</sub> is correlated with z<sub>2</sub>. C) K<sub>2</sub> is correlated with u<sub>1</sub>. D) K<sub>1</sub> is correlated with u<sub>1</sub>. 2z2 + u2
OLS will suffer from simultaneity bias if:

Definitions:

Systematic Desensitization

A behavioral therapy technique intended to reduce phobic responses or anxiety through gradual exposure to the feared object or situation combined with relaxation techniques.

Physically Present

Being bodily in a specific location or space, as opposed to being there in thought, via communication technology, or representation.

Anxiety Hierarchy

An anxiety hierarchy is a ranked list of stimuli or situations that provoke anxiety responses, used in therapy to progressively desensitize a person to their fears.

Cognitive Schema

A mental framework that organizes and interprets information in the brain, helping to understand and predict the world around us.

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