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.

Answer: D

Economics

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