In Econometrics, Simultaneity Arises When

Multiple Choice

In econometrics, simultaneity arises when:

A) strictly exogenous explanatory variables determine the dependent variable through a step-by-step process.
B) the error term is correlated with both the dependent variable and explanatory variables.
C) one or more of the explanatory variables is jointly determined with the dependent variable.
D) both serial correlation and heteroskedasticity are present in an hypothesized model.