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Which of the Following Is True

Question 1

Multiple Choice

Which of the following is true?


A) A functional form misspecification can occur if the level of a variable is used when the logarithm is more appropriate.
B) A functional form misspecification occurs only if a key variable is uncorrelated with the error term.
C) A functional form misspecification does not lead to biasedness in the ordinary least squares estimators.
D) A functional form misspecification does not lead to inconsistency in the ordinary least squares estimators.

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