Which of the Following Problems Would Lead an Economist to Use

question 2

Multiple Choice

Which of the following problems would lead an economist to use instrument variable methods?

• A)the dependent variable has an impact on the independent variable.
• B)there are too few quarters of data.
• C)there are too many independent variables.
• D)the R2 is too high.
• E)the residuals are too small.

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The primary menu in Windows operating systems that provides access to programs, folders, and system settings.