Instrumental variables requires that the variable not be correlated with the outcome variable.

A. True
B. False
C. Uncertain

A. True

Economics

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Despite an expansionary monetary policy, an economy experiences a recession. Everything else held constant, the recession could occur in spite of the rightward shift of the LM curve if

A) consumer confidence decreases sharply. B) there is an investment boom. C) the money supply increases. D) taxes are cut.

Economics

In years when teenagers become a greater percentage of the labor force,

A) the natural rate of unemployment falls. B) the natural rate of unemployment rises. C) the inflation rate rises. D) the inflation rate falls.

Economics