In Econometrics, Simultaneity Arises When

question 10

Multiple Choice

In econometrics, simultaneity arises when:

• A)strictly exogenous explanatory variables determine the dependent variable through a step-by-step process.
• B)the error term is correlated with both the dependent variable and explanatory variables.
• C)one or more of the explanatory variables is jointly determined with the dependent variable.
• D)both serial correlation and heteroskedasticity are present in an hypothesized model.

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Definitions:

Married Couple

Married Couple denotes two individuals legally united in marriage, forming a partnership typically recognized by law, religion, or social convention.

People Running

Individuals engaging in the act of running, which is a method of terrestrial locomotion allowing humans and animals to move rapidly on foot.

Known Societies

Societies or communities that have been identified, studied, and documented in academic or historical contexts.

Marriage

A legally and socially sanctioned union between individuals that establishes rights and obligations between them, as well as between them and their children.