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The Distinction Between Endogenous and Exogenous Variables Is

Question 12

Multiple Choice

The distinction between endogenous and exogenous variables is


A) that exogenous variables are determined inside the model and endogenous variables are determined outside the model.
B) dependent on the sample size: for n > 100, endogenous variables become exogenous.
C) depends on the distribution of the variables: when they are normally distributed, they are exogenous, otherwise they are endogenous.
D) whether or not the variables are correlated with the error term.

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