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What Are Reduced Form Equations in a System of Equations

Question 1

Multiple Choice

What are reduced form equations in a system of equations?


A) the structural equations rewritten with endogenous variables as a function of exogenous variables
B) the structural equations without the endogenous regressors
C) the exogenous variables reworked as a function of the other exogenous variables
D) the equations remaining when the parameters of structural equations are reduced to generate additional degrees of freedom

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