Price is the best predictor of an event

Simultaneous causality bias

A) is also called sample selection bias. B) happens in complicated systems of equations called block recursive systems. C) results in biased estimators if there is heteroskedasticity in the error term. D) arises in a regression of Y on X when, in addition to the causal link of interest from X to Y, there is a causal link from Y to X.

The income effect of an increase in the interest rate will result in an increase in consumption when a. young and an increase in savings when young. b. old and an increase in savings when young

c. young and a decrease in savings when young. d. old and an increase in savings when old.