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.

A

Economics

You might also like to view...

Large denomination time deposits are included in:

A) M1. B) M2. C) M3. D) L.

Economics

In order for effective price discrimination to occur, a seller must

a. be a pure monopolist. b. have large economies of scale and control over a key natural resource. c. face a horizontal demand curve for its product. d. have at least two distinguishable groups of consumers.

Economics