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In Regressing GDP on Openness,a Potential Solution to the Simultaneity

Question 6

Multiple Choice

In regressing GDP on openness,a potential solution to the simultaneity problem is to


A) use geographical proximity to foreign markets to predict trade flows
B) use tariffs as an inverse measure of openness
C) run a limited-dependent variables regression
D) exclude financial reform as an independent variable
E) lag the dependent variable

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