An Instrumental Variable Is a Variable That Is Correlated

Multiple Choice

An instrumental variable is a variable that is correlated

A) with the endogenous right hand side variable but not correlated with the error term.
B) with the error term but not correlated with the endogenous right hand side variable.
C) with both the error term and the endogenous right hand side variable.
D) with both the endogenous right hand side variable and with another independent variable.